What are we to make of the latest unemployment rate (UR)?

I genuinely want comments because the unemployment rate is key to decision making from all stakeholders in the economy and there are so many different opinions.

Personally I think the UR is BS ever since Keating determined that being employed was one hour (or more) of paid work in a week.

The UR should be considered together with the Participation Rate (67.1%) and, arguably the most important figure, the Underemployment Rate (not published).

Unfortunately, with an UR of 4.1% it’s certain that the RBA will not announce an interest rate cut.

How can this be so with the cost of living crisis (I hate that term. It’s media generated and means nothing), mortgage/rent stress and a drop in household spending?

History is important here. Neoliberalism began in Australia in the 80s with Hawke and Keating as it did in the UK (Thatcher) and the US (Reagan). By the 2000s, the unions were reduced to de facto lobby groups. EBAs and individual contracts collapsed collective bargaining.

There was no incentive for business to improve productivity apart from reducing wages and conditions.

This situation has continued up to today.

Without wage increases and improved working conditions, there is no incentive for businesses to improve the way they operate thus improving the economy and the future for all.

We’ve seen the effect of this over the past 20+ years with the increase in inequality and the working poor.

So it’s not surprising to me that despite the lower classes facing tough times, the UR is steady. Labour is relatively cheap.