Being beguiled by labour force data
I said the other day that I would avoid the US debate for a while. So to wean myself off it I have gone to the other extreme. Local! Today the Australian Bureau of Statistics released their Detailed Labour Force data for June 2011, which always follows a week after the preliminary national estimates are released. Among that data release are the regional estimates which provoke considerable interest because they relate to localised areas where the local lobby groups – like real estate developers, chamber of commerces, and the like are always keen to seize on the data to promote their own agendas. So typically they will seize on some easy to understand single indicator and pronounce forth when, in fact, a more detailed analysis shows that the situation is exactly the opposite to what they are claiming. This generally happens when the unemployment rate falls and they tell everyone things are good (which of-course advances their own interests). So I thought I would just document (again) this issue as a way of further educating the public in the prudent use of labour force data. Things are not always what they seem.