The headline in [last week’s] Coast Community News that “Unemployment on the Coast falls to 2%” is way off the mark.
The data (2% unemployment rate) was correct for May, but since May we’ve seen global supply issues driving up domestic interest rates and consequently driving up unemployment (now back up to 3.6%).
The Central Coast unemployment rate increased in June, jobseeker recipients also increased, job vacancies decreased, and the payroll jobs index is also showing a decrease in June.
In other words, all the economic indicators are all now pointing in the opposite direction.
If the Reserve Bank continues to overcorrect then we’ll likely end up with a stagflation scenario, with a continued decline in real wages.
Patrick Spedding, Copacabana