Treasurer Jim Chalmers has expressed his desire to maintain a low and sustainable jobless rate. He has clarified that Labor’s employment white paper does not conflict with the Reserve Bank of Australia’s (RBA) unemployment rate target. Although the white paper does not set a specific statistical target like the RBA’s non-accelerating inflation rate of unemployment (NAIRU), its objective is to bring the unemployment rate as low as possible. Mr. Chalmers stated that the government aims to achieve low unemployment and moderate inflation.
RBA Governor Michele Bullock faced criticism in June when she suggested that unemployment would need to rise to 4.5 percent as a measure to control inflation. Currently, Australia’s jobless rate is 3.7 percent, which exceeds the RBA’s definition of full employment. Mr. Chalmers emphasized that the government’s objective is to provide good, secure, and fairly paid jobs for all individuals seeking employment. The employment white paper, which followed a jobs and skills summit in 2022, will strive to achieve consistent and comprehensive full employment. It will include initiatives aimed at supporting older Australians, women, and addressing gender equality and wage disparities. Additionally, it may outline the National Skills Passport and strategies to ensure sufficient working hours and facilitate the reintegration of job seekers into the labor force.