Unemployed or lazy? Economists know better

By Phil Lewis

For instance, perhaps quite rightly, most people don’t like terms like “natural rate of unemployment”, even more so when told it means (to paraphrase) “the unemployment rate when you have full employment”.

The Commonwealth Treasury estimates this rate of unemployment to be just under 4. 75% (over 500,000 persons) which most would find unacceptably high. In addition, about 1. 5 million people of working age rely almost entirely on social security for a living, but only a third are “unemployed”.

Even terms as simple as employment and unemployment, as used by the Australian Bureau of Statistics and in economics, are little understood by the general public.

However, the ABS report clearly says that the estimate of the monthly change in the unemployment rate has a “95% confidence interval” of -0. 1 to 0. 7.

Read more here: Business Spectator


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