Nassim Khadem

And I'm ABC business reporter Nassim Khadem.

It's so exciting to be in the same studio as you, Dan, and actually see you in the office.

We always miss each other.

The unemployment rate increased from 4.3% to 4.5%.

Now, that is a concern because, you know, we have seen forecasts from Treasury saying that the unemployment rate could actually hit around 5%, you know, within the coming year.

So a lot depends on what happens with the situation in Iran, if the war is prolonged and what effect that has on the economy.

But Dan, I think people are very concerned always about inflation numbers and forget that people having jobs are just as important here.

Exactly.

A lot of the conversation is, oh, but the inflation's going higher.

You know, you always hear the RBI saying, so inflation's going higher, we really have to deal with inflation.

But every time they hike interest rates, you know, you and I, Dan, talk to Australians about the effect this has on them when they're

mortgage repayments go up, they look at ways of cutting back.

So they might, you know, not go for that extra dinner.

Now they're looking at cutting back on things for their kids' school education, you know, all this sort of thing.

But once they lose their jobs, that's when it becomes problematic because that's when you start to see foreclosures go up.

You know, people have to sell their homes.

And, you know, when I did, I did a piece about stagflation.

So that's when you've got a slowing economy and rising inflation at the same time and spoke to some notable economists like Nick Gruen and Bob Gregory.

And they were talking about unemployment rates.

If the war drags on, they were talking about unemployment rates.