Despite an end to the recession, at least in a technical sense, unemployment increased by 12,000 in the September quarter, with total unemployment hitting 150,000 or 6.5%.
It has been reported in the U.S that the unemployment rate is under-reported due to the particular rate they choose to report, this is the U3 number. This makes the comparison to the unemployment rate of the Great Depression useless, as back then they used the U6 number.
New Zealand too must report an unemployment number that is comparable internationally, however unfortunately, the Statistics department does not report a number or rate similar to the U6 number.
However, below we have come up with the rate of ‘the jobless’, which are people who are available for work but are not working and those searching for work but are unavailable. Not surprisingly, this rate is far greater than the official unemployment rate.
Worse still is the number of people who are working part-time and who would like more hours, or are searching for full-time work. This group is the so called underemployed. Adding these groups in produces a number similar to the U6, and it is not good reading.
Currently unemployment is rising (53.9%) and employment is falling (1.8%) , but these measures does not paint a complete picture. People generally dislike being unemployed, so many people will move into study, or continue studying, or just remove themselves from the labour force for whatever reason. This fact is shown by the decrease in the labour force participation rate (-0.6%) and the increase in the number of people not in the labour force (-3.3%).
If the citizenry are going to take the employment situation seriously, then one must reject the belief of a ‘jobless’ recovery, reject the ridiculous and unhelpful unemployment figures and investigate the true cause of unemployment. Unemployment like many things, is caused exclusively by the government. Henry Hazlitt mentions this in his 1946 book Economics in One Lesson,
It has been reported in the U.S that the unemployment rate is under-reported due to the particular rate they choose to report, this is the U3 number. This makes the comparison to the unemployment rate of the Great Depression useless, as back then they used the U6 number.
New Zealand too must report an unemployment number that is comparable internationally, however unfortunately, the Statistics department does not report a number or rate similar to the U6 number.
However, below we have come up with the rate of ‘the jobless’, which are people who are available for work but are not working and those searching for work but are unavailable. Not surprisingly, this rate is far greater than the official unemployment rate.
Worse still is the number of people who are working part-time and who would like more hours, or are searching for full-time work. This group is the so called underemployed. Adding these groups in produces a number similar to the U6, and it is not good reading.
Currently unemployment is rising (53.9%) and employment is falling (1.8%) , but these measures does not paint a complete picture. People generally dislike being unemployed, so many people will move into study, or continue studying, or just remove themselves from the labour force for whatever reason. This fact is shown by the decrease in the labour force participation rate (-0.6%) and the increase in the number of people not in the labour force (-3.3%).
If the citizenry are going to take the employment situation seriously, then one must reject the belief of a ‘jobless’ recovery, reject the ridiculous and unhelpful unemployment figures and investigate the true cause of unemployment. Unemployment like many things, is caused exclusively by the government. Henry Hazlitt mentions this in his 1946 book Economics in One Lesson,
"The government spenders create the very problem of unemployment that they profess to solve"Minimum wage, public holidays, overtime rates, 20 days annual leave, maternity leave and other government regulations are the real causes of unemployment because they force businesses to pay employees for being non-productive. Until employees are only paid for being productive, unemployment will exist.
More to come...
themarketanarchist
Addendum
Government not only destroys jobs by creating regulations that makes hiring working less advantageous, it also destroys jobs (or potential jobs) with government spending. The creation of government jobs merely just transfers labour and capital from the private (productive) sector to the public (non-productive) sector. This action is called 'crowding out'. This limits the available capital businesses and entrepreneurs would otherwise use to start or expand their business and employ more workers.
Here is a good run-down of government spending and job creation.
Here is a good run-down of government spending and job creation.
Who are you and what is your background?
ReplyDeleteHi Peter,
ReplyDeleteOne of us does the statistical analysis (has a background in statistics) and the writer has a background in economics and financial markets.
Cheers