Home > Social Issues, The Body Politic > Lies, Damned lies and Statistical Lies – ** UPDATE **

Lies, Damned lies and Statistical Lies – ** UPDATE **

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ministry-of-truth-update

 

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Intro

A few days ago, this blogger reported how Statistic NZ had implemented a revision which would materially affect how unemployment stats were counted;

On 29 June 2016, Statistic NZ announced that it would be changing the manner in which it defined a jobseeker;

Change: Looking at job advertisements on the internet is correctly classified as not actively seeking work. This change brings the classification in line with international standards and will make international comparability possible.

Improvement: Fewer people will be classified as actively seeking work, therefore the counts of people unemployed will be more accurate.

The statement went on to explain;

Change in key labour market estimates:

  • Decreases in the number of people unemployed and the unemployment rate

  • Changes to the seasonally adjusted unemployment rate range from 0.1 to 0.6 percentage points. In the most recent published quarter (March 2016), the unemployment rate is revised down from 5.7 percent to 5.2 percent 

  • Increases in the number of people not in the labour force 

  • Decreases in the size of the labour force and the labour force participation rate

The result of this change? At the stroke of a pen, unemployment fell from 5.7% to 5.2%.

Simply because if a person was job-searching using the internet they were “not actively seeking work“.

Which beggars belief as the majority of jobseekers will be using the internet. It is the 21st century – what else would they be using?

Update

Four days later, our esteemed Dear Leader, John Key, was interviewed on TV1’s Q+A by Corin Dann;

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key - corin dann - q+a

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Key told Dann;

“The unemployment rate in New Zealand is now falling pretty dramatically.”

Well, it would, wouldn’t it?

Of course unemployment would fall “pretty dramatically” if  government statisticians are cooking the numbers.

It did not take Key very long to use the “revised stats” to his advantage.

Expect more BS from National ministers congratulating themselves about how well their “job creation” policies are working.

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1984-movie-ration

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References

TVNZ: Q+A – Interview with John Key

Statistics NZ: Household Labour Force Survey – Revisions to labour market estimates

Scoop media: On The Nation – Patrick Gower interviews John Key

Previous related blogpost

Lies, Damned lies and Statistical Lies

 

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You know I can't do your ghost jobs John

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This blogpost was first published on The Daily Blog on 6 July 2016.

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= fs =

 

 

 

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