Wednesday, August 05, 2020

The unrepresentative unemployment rate

According to Statistics NZ the June quarter unemployment rate dropped to 4%

These figures are derived from a 15,000 household survey and extrapolated.

ACTUAL numbers on the combined Jobseeker benefit and Covid Income Relief Payment at July 24, 2020 are 212,397.

A couple of reasons the numbers are so different are:

1/ Someone working just a few hours is not defined as 'unemployed' in the survey but can qualify for the Jobseeker benefit

2/ Someone who has been made redundant and receiving the Covid Income Relief Payment temporarily might not be looking for work right so is also not defined as 'unemployed' in the survey.

Then there is the not inconsequential matter of the 452,425 currently employed on a wage subsidy...

1 comment:

gravedodger said...

I didnt get that from Grunter on Hosking just after seven.

I did hear though his closing comment, where in response to a further Question as to policy for the economy, Grunter replied along the lines of "there is still the forty billion contingency from the budget".