Julia
In Memoriam
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- 10 May 2005
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When that jobs figure was announced, there was considerable surprise expressed all round. 121,000? Really?Unemployment down...........121,000 jobs created.
More jobs are being created since removing the Carbon Dioxide tax, the Mining tax, green and red tape resulting in increased business confidence = more jobs.......Governments don't create jobs but they create an environment for private enterprise to make it worth while......I must confess though it takes a lot of savvy to understand all that......I hope you have it.
Now today, the following is an extract from an article by Terry McCrann:
As for that jobs number, it was obviously completely wrong. It'd be the equivalent of nearly two million jobs being created in the US in a single month - trust me, they'd think they were in a boom if they got 500,000.
There's a much more general message out of it, which the various economists and commentators will almost certainly not learn.
This is that even 'normal' monthly jobs numbers are meaningless. A figure of 121,000 looks wrong, so most commentators treated it with caution. Exactly the same applies to a figure of 21,000.
But instead, commentators will authoritatively opine that such a figure shows the economy is picking up pace, or the opposite, depending whether it's a plus or minus.
It's a bit like commentators, when the market rises or falls, attributing it to X. Y, or Z. Mostly they have no idea but like to sound wise. Ditto all the economists who apparently feel obliged to suggest prior to the Reserve Bank's regular meeting each month that the Reserve will probably do this or that because of A, B or C.
All just unnecessary and often wrong.
So just on the jobs figure, just as with much else in life, if it looks too good to be true, then that is probably because it is.