Today’s release by the Australian Bureau of Statistics (ABS) of the Labour Force data for February 2012 presents a very poor set of numbers. Yesterday, we learned that the Australian economy had cut its growth rate in half in the December 2011 quarter (compared to September 2011). The labour force data tells us what is happening in the last few weeks and so gives a much more timely assessment of where things are at. The conclusion is that the trend signified by the National Accounts data has accelerated and the economy is shedding jobs, driving workers out of the labour force (participation falling) and unemployment is rising as a result. The Federal government’s reaction to the poor growth figures which are undermining its obsessive pursuit of a budget surplus was that they would have to cut spending even harder. That approach exemplifies irresponsible and failed macroeconomic management. Their policies settings are contributing to the poor labour market data. The most disturbing aspect of the labour market data over the last year or more has been the appalling state of the youth labour market. Teenage females did gain some modest relief this month from the relentless loss of jobs, but teenage males continued to go backwards. This should be a policy priority for the government. But they have gone missing in action – lost in their surplus mania. My assessment of today’s results – the evil troika is evident – falling employment, rising unemployment and falling participation. That is an unambiguously bad result.