Reserve Bank governor Glenn Stevens is "quite concerned" that Australia's unemployment rate has reached a 12-year high.
Australia's jobless rate jumped to 6.4 per cent in July, official figures showed, surprising market analysts who have been awaiting the governor's thoughts on the shocking rise.
In his semi-annual testimony to parliament on Wednesday, Mr Stevens said he was concerned about the rise but reminded people that the current jobless rate would historically be regarded as low.
"I'm quite concerned at the thought that unemployment is higher," Mr Stevens said.
"I'd still observe that even on the latest reading, it's not that many years ago that six-point-something was regarded as low.
"I regard it as not quite low enough actually, but I think we need to keep a bit of historical perspective here on how high it is."
Mr Stevens said the RBA's mandate was to achieve full employment as well as price stability.
He said the RBA's two-to-three per cent inflation target framework was a good one for keeping both goals in mind.
Share
