In the end it comes down to supply and demand. The Reserve Bank can only influence the demand side of the economy – and that with difficulty and a considerable lag. It can’t do anything about the supply side.
But Governments can.
Rather than insisting that it take employment into account when making interest rate decisions – as though it didn’t already – it would be more helpful for politicians to focus on policies that would, for instance, create a better match between the skills employers need and those job seekers have to offer.