ACTU policy paper calls for the RBA to pursue full employment in balance with its inflation target.
, the RBA said it was not expecting inflation to return to the top end of its target range until December 2024, at which point the unemployment rate would be 4 per cent. The central bank expects GDP growth to slow from next year, but it is not forecasting a recession.The ACTU wants the jobs and skills summit to consider a “a fairer and more comprehensive inflation-reducing policy” that protects workers’ incomes, and transition away from inflation control being the sole responsibility of the RBA.
The report says the biggest single source of inflation is the failure of governments to roll out the affordable supply of key commodities, and says a faster transition to renewable resources will reduce the country’s vulnerability to fossil fuel price shocks. “Essential to this is rebuilding collective bargaining which is the engine room of wages growth and productivity discussions.”Higher wages growth would support the economy during downturns by boosting consumer spending, the ACTU said.
“Lower income and indebted families will bear the brunt of that contractionary strategy – whereas high-income households, which do not need to borrow to finance their luxury spending, will hardly notice,” the ACTU wrote.about households’ ability to cope with rate rises, given almost three-quarters of debt outstanding is held by the top 40 per cent of income earners.
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