Media wrong on unemployment, again

All the journalists have to do is to read the ABS release. It’s right there on the top: the third line in the Key Figures. The trend rate shows an increase from 5.4% to 5.5% over the month of April.

Thank God! Now all those confounded economists can relax! The trend rate in unemployment is not paradoxical and (still) not alarming.

Why should the ABC (and others) be using the trend rate rather than the volatile ‘seasonally adjusted’ number? Here’s the explanation I offered last time, drawing on the information that the ABS provides in its easily understood releases.

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