Older workers in Australia taking on more work, while in Britain they are bailing out
It’s Wednesday and a few items caught my interest in the last few days. I have been besieged with requests to comment on the Bank of Japan’s announcement yesterday to widen the range in which it conducts yield curve control for the 10-year Japanese government bond yield. Some of the besiegement (which means in English – aggressive pressure or intimidation) claims that the decision shows the private bond investors have finally won and is the last nail in the Modern Monetary Theory (MMT) coffin. If the senders were comics, they would be very funny. Otherwise, it signals a sad reluctance to face reality. It is called yield curve CONTROL for a reason. Anyway, I will analyse the decision for my readership tomorrow I think. Today, though, I saw two pieces of data that demonstrate the impacts of Covid and inflation on two different labour markets. In Australia, they are now calling it the ‘great unretirement’ as older workers flood into the labour market in recent years – allegedly, so the spin goes because of by “more favourable workplace conditions”. I think there is more to it than that. Over the other side of the World in freezing cold Britain, it appears that the impacts of Covid (“rising sickness”) have, in part, been responsible for an “exodus of more than half a million people from the British workforce”, which means the growth capacity is now more limited. These are interesting trends that need thinking about.