Australia’s overall employment
shocked economists by falling in October. Unemployment rose by another 0.1 % to

Economists on average
expected a rise of 15K jobs, but the outcome was a fall of 20K. (Of course
this needs perspective – have you ever met an “average economist”? – you
certainly would not want your daughter to marry one).

Worse still, full-time
jobs fell by 61K and part-time jobs rose by 41K. The rate of unemployment rose
for the second month in a row to 5.2% of the workforce, at least as measured by
the ABS. Good economists generally think the correct ratio is two or even three
times higher.

Bond yields had risen
sharply overnight as a US bond auction was not as well
supported as hitherto by overseas central banks. Australia
followed suit but the weak employment data reversed that

Read Peter Jonson’s
“Choppy Waters”
essay here.