Sun, 15 Mar 2009 08:37:25 GMT
Unemployment rate on upwards trend.
The unemployment rate data published this morning shows a not surprising continuing rise in the unemployment rate. The headline rate is 5.2%, up from 4.8% a month ago, and a low of 3.9% last year. It is well to remember that this is still a very low unemployment rate, but the worrying issue is that the rate is heading up fairly quickly, that full time job losses are large, and that layoffs continue at a fairly rapid pace. In the US the unemployment rate has risen very quickly to a current rate of 8.1% – as recently as April last year the US unemployment rate was below our current 5.2% rate.
So it is appropriate for the government to be spending money to try to slow the rate of unemployment growth. But with the latest payments going out to families and individuals it was interesting to see two recipients on last nights ABC news. One punter was spending the payment on an overseas holiday, while the other was buying a new PC. Both punters are probably creating more jobs in Thailand than in Australia. Once again, the most effective way to create jobs is not to give away handouts, but to spend on infrastructure.
