Today’s release by the Australian Bureau of Statistics (ABS) of the Labour Force data for April 2012 reveals a weak labour market with the employment gains being confined to part-time work and workers dropping out of the labour force due to the limited available vacancies. While unemployment fell by 28.8 thousand, the drop in participation accounted for 26 thousand of that – meaning the Australian economy has been busy over the last month converting the official unemployed into hidden unemployed. This is not a “good” outcome as some in the media and the Government are claiming today. The outlook is also not very positive either given the Federal government’s obsessive pursuit of a budget surplus which will cut economic growth by some percentage points. They are even boasting that if growth falls short and tax revenue shrinks they will impose even further cuts on spending and/or increases in taxes. At that point the word idiocy comes to mind. The most disturbing aspect of the labour market data remains the appalling state of the youth labour market. 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 – very subdued indeed. I will be on ABC Radio National Drive program tonight from 18:15 talking about today’s data! Live Feed.