One of the ways to reduce such employment in the country is to reduce the interest rates, which is what the RBA intended to do as per the article. Reduced interest rate releases money in the market stimulating demand, hence production. This is likely to be followed by investment which in turn will produce growth opportunities for the firms. These growth opportunities are usually followed closely by generation of employment opportunities. Thus, RBA’s move of reducing interest rates is justified. However, one of the crucial side-effects of this is that it may cause inflation in the economy if the production does not meet the increasing demand. If the demand increases, but quantity supplied remains fixed, people will be willing to pay more for the same commodity as they would have expendable money with them. This leads to increase in price of the commodities leading to inflation. Such inflation is called Demand Pull Inflation.
The Short-Run Phillip’s Curve says that there exists a tradeoff between inflation and unemployment. If one decreases, the other increases and vice versa. In other words, to reduce unemployment the economy will have to undergo inflation. Thus, it is virtually impossible to reduce unemployment without increasing the inflation. So, the RBA’s move is quite justified.