Today’s release by the Australian Bureau of Statistics (ABS) of the – Labour Force data – for March 2013 reveals a very weak and deteriorating labour market. All the main indicators were bad – employment fell, full-time employment fell, unemployment rose, participation fell and aggregate monthly hours worked fell. The unemployment rate would have risen to 5.9 per cent rather than the 0.2 point rise to 5.6 per cent had the participation rate not fallen by 0.2 points. There are now 686 thousand workers unemployed. The youth labour market remains in an appalling state. Overall, the data is consistent with the steady flow of information pointing to a contraction in the Australian economy, which is being deliberately exacerbated by the Federal Government’s insistence that it pursues a budget surplus. Private spending growth is insufficient to drive growth at present and the Government should be increasing the deficit and targetting job creation programs. Instead, it marches on to electoral oblivion and watches the labour market deteriorate and unemployment rise.