Answer to Question #15162 in Economics of Enterprise for Babu
Many people find the current unemployment figures for Australia a bit unbelievable. Why is this.
Australia's real unemployment rate is twice the official figure and the Reserve Bank must urgently cut interest rates, says the nation's biggest research firm.
A Roy Morgan Research snapshot of more than 4500 people in April put the national unemployment rate at 9.3 per cent.
This compares to Australian Bureau of Statistics estimates that only 4.9 per cent of Australians are unemployed.
"The RBA uses the government's statistics and they say there is no unemployment, so we must keep the interest rates high," Roy Morgan executive chairman Gary Morgan said on Tuesday.
"It is nonsense... the interest rate should have been 3.5 per cent for the last three years."
Roy Morgan Research CEO Michele Levine said Canberra bureaucrats were blinkered by low local unemployment - around half the national average - and high consumer confidence.
"It's like Disneyland," she said.