Stalinist Rounding Error

OK, the cash rate set by the Reserve Bank is slightly obscure. It’s the interest rate on unsecured overnight loans between banks. It’s not a retail rate. But it has been 0.1 per cent since November 2020, so you might think that the opposition leader, Anthony Albanese, might have got with the program by now.

But his ignorance of the current rate of unemployment is much less forgivable. He unwisely chanced his arm with 5.4 per cent; the correct answer is 4.0 per cent. It’s likely to go lower in the coming months. It’s the lowest recorded rate in around half a century. The employment-to-population ratio is close to 64 per cent, close to a historic high…

The point is that you would have to be living under a rock (or hanging out in Canberra with your campaign team) to fail to realise that the labour market is extremely tight.

An unemployment rate of 5.4 per cent does not represent a tight labour market; a rate of 4.0 per cent does. The difference is close to 200,000 persons.

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8 Responses to Stalinist Rounding Error

  1. NoFixedAddress says:

    Come off it C.L.

    Imagine the accolades the Albatross will receive within the leftist community for bringing down unemployment by near 26% (5.4 to 4.0).

    Swanny will be so envious!

  2. and says:

    Good ol’ Elbow® has hit the ground running.

  3. Petros says:

    How is unemployment so low with so many businesses closing?

  4. Entropy says:

    How? Everyone works directly or indirectly for the government.

  5. Fat Tony says:

    What’s the definition of “employed” these days?

  6. Buccaneer says:

    If frydenburg or Morrison made this mistake either from government or opposition it would be big news in all the usual outlets. That this guy has no idea about how much headroom there is in the economy to grow suggests his promises of reducing the deficit are half hearted at best. Then, I suppose we already guessed this when he led with very fast train and is now suggesting he will grow the economy through free childcare and making it easier to see the doctor. After waiting so long for his shot one might have thought he would try a little harder than a new girlfriend, a fancy suit and a bunch of lifestyle shots with puppies.

  7. Tel says:

    What’s the definition of “employed” these days?

    Jobkeeper payments.

  8. Gab says:

    What’s the definition of “employed” these days?

    Working one hour per week.

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