Wry & Dry

Laughable: the Bureau of Statistics saying that Australia's unemployment rate fell to 5.9% from 6.2% in October

W&D is all for more employment.  But for the ABS to suggest that employment rose by a massive 58,000 people in October (and the unemployment rate to fall to 5.9%) is nonsense.  

This is a sampling error, probably caused by the one-eighth of the 26,000 households surveyed each month that is new to the survey sample being demographically different to the one-eighth it replaces.

The reality is probably that about half the actual number of announced jobs were created.  And hence the unemployment rate was probably about 6.1%.

The laughable outcome is that not only did Treasurer 'Jim' Morrison leap upon the seemingly laudable data with glee (and take credit for it) but that the currency traders bounced the currency upwards.

Both will look sheepish when next month's figure comes out.