“The Australian labour market is in a sweet spot and today’s release will be of little significance to the RBA.

“Recent indicators for January suggest that the market is performing well, aligning closely with RBA estimates.

“The risks of inflation from a low unemployment rate have abated, but the RBA will be watchful of the indirect risks from the labour market.

“The revision of the RBA’s medium-term unemployment expectations from 4.5 percent to 4.2 percent indicates their new view that an unemployment rate close to 4 per cent can be sustained without causing inflation.

“Job creation in January was notable, with 44,000 more jobs added, coupled with a record high participation rate of 67.3 per cent. This influx of employment opportunities is crucial, as it will help alleviate some of the financial strains on households since the relief offered through RBA’s recent cash rate cut will take time to materialise into lower mortgage payments.

“Despite 23,400 additional unemployed people in January, a trend observed in the last three years with people who were either waiting to start work or return to work in January, Australia is operating close to full employment and has a substantial number of job vacancies.

“While rate cuts provide short-term economic relief, they are not a panacea for all economic difficulties. Rate cuts are just tweaks around the edges. They effectively manage economic fluctuations but do not address the core issues that drive long-term economic growth and living standards. For sustainable improvements in living standards, the focus must shift to productivity growth.”