In a way this is an extension of yesterday’s blog where I argued that the gap between the outlandish statements coming from the media and other commentators about how the economy is tracking and the actual data is substantial. Today the ABS released the Labour Force data for February 2010 and the data reveals that employment growth stalled and unemployment rose again. The “markets” (those geniuses) had factored in a solid employment growth which only suggests they know how to extrapolate on recent data points. Further, labour force participation fell which makes the situation even more sombre. So amidst all the talk about employment going ape and wage breakouts about to happen – things have cooled somewhat as the impact of the fiscal stimulus wanes. Yes, its a monthly result and the trend is still mildly positive. But with the declining fiscal stimulus and private spending remaining subdued – today’s data doesn’t signal a steam train economy.