RBA Uses 900 Business Interviews to Gauge Labor Market Tightness
The Reserve Bank of Australia (RBA) conducts around 900 business liaison interviews each year to gain insights into the labor market, supplementing official statistics. Assistant Governor (Economic) Sarah Hunter revealed this figure during an interview on The Pay Off podcast on 22 September. These interviews provide a steady flow of first-hand information from various industries and locations, helping the RBA understand ground-level conditions between official data releases.
Official statistics, though vital, arrive with a lag and are summarized at a national level. Business conversations help fill in the details, such as hiring approaches, demand trends, and cost considerations. While the RBA has not published specific findings from its latest round of liaison interviews, this input is one of many factors considered by the Board when forming its views.
RBA Governor Michele Bullock described the labor market as 'a little bit tight' during a media conference on 29 September, citing an unemployment rate of 4.6%. She noted that the rate had risen from 3.5% over the past couple of years but emphasized that wage growth is not driving current inflation. The August 2026 Statement on Monetary Policy forecasted the unemployment rate to increase to 4.8% by the end of 2028.
The RBA raised the cash rate target by 25 basis points to 4.60% on 29 September, its fourth increase in 2026. The Board highlighted strong growth in business investment and debt, while consumer spending is easing gradually. The Financial Stability Review released on 1 October noted that most businesses can manage elevated cost pressures, though conditions are challenging in sectors like hospitality, construction, and transport.