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Unemployment rises to 4.1% The unemployment rate now has a '4' in front of it, after hovering in the 3s for 22 consecutive months. Unemployment rose from 3.9% in December to 4.1% in January, according to the Australian Bureau of Statistics. The gradual increase in unemployment over the past year (see graph) has been caused by the battle against inflation. The Reserve Bank has pushed up interest rates to take the heat out of the economy – which has both reduced inflation and (predictably) increased unemployment. #unemployment is expected to be 4.3% at the end of this year, according to recent Reserve Bank forecasts. A rising unemployment rate (and rising business insolvency rate) is being closely monitored and is the main reason why the #RBA may reduce #interestrates sooner than planned. #economy #jobs #money

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