Today’s labour market surveys will have come as something of a mixed blessing for the Reserve Bank. On the one hand, their efforts to take the heat of the economy are still bearing fruit – unemployment has continued to rise from its lows, and wage inflation has (mostly) passed its peak. But at the same time, they haven’t made as much progress as they would have hoped at this point, adding to the risk that inflation could prove to be more stubborn than thought. The unemployment rate rose from 3.9% to 4.0% in the December quarter, returning it to its pre-Covid low. Employment is still on the rise, up 0.4% for the ... (full story)