Australia’s unemployment is ‘lower than is sustainable’

Grattan Institute CEO Danielle Wood says unemployment in Australia is “a bit lower than is sustainable”.

“The point of full employment as an economic concept is basically the point at which you’ve got wages growing sustainably, so the labour market is not so tight and probably at the moment I think arguably we are ‘over full’,” she told Sky News Australia.

“Unemployment is a bit lower than is sustainable.

“But we shouldn’t lose sight of that fact that we actually do want unemployment to stay low because it means the people are now getting into jobs that couldn’t do so in the past.”