Today the ABS released the Labour Force data for March 2010 and the data reveals that employment growth is very tentative and unemployment is rising. Unemployment rates in the populous states have risen. Further, labour force participation fell which makes the situation even more sombre. The bank economists have claimed that this is a picture of a near booming economy with wage inflation and skills shortages becoming the main focus. I consider their judgement to be seriously impaired and biased. Amidst all the talk about strong employment growth and wage breakouts about to happen – conditions in the Australian labour market are, in fact, very tepid as the impact of the fiscal stimulus wanes. With the declining fiscal stimulus and private spending remaining subdued – today’s data doesn’t represent a place we would want to be in for very long.