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Sky News Business Editor Ross Greenwood spoke with RMIT University's Dr Leonora Risse to discuss why the Reserve Bank of Australia might want the unemployment rate to go up.

Dr Risse discussed the "elusive" non-accelerating inflation rate of unemployment (NAIRU), which is the lowest unemployment rate that an economy can sustain without causing significant inflation.

She said reaching the NAIRU is uncertain until it's achieved, akin to a "limbo" game.

"It suggests that we may need to tolerate a slightly higher level of unemployment to bring down those inflationary pressures ... we don't know yet what that exact number will be," Dr Risse said.