Today among other things I have been examining the hours data more closely to further highlight the difference between the 1991 recession and our current woes. The comparison is interesting and reveals a lot about how labour markets adjust. It also provides some scope to develop further insights into total labour underutilisation. However, while the current labour market state requires an urgent further injection of net public spending the circumstances are different to what we faced in 1991.

Today I was interviewed for the ABC World Today program about the current International Monetary Fund report which has criticised the Treasury and RBA forecasts of the Australian economy and suggested the Reserve Bank should consider more interest rate cuts.