Employment up, unemployment down

The quarterly Labour Market Statistics for the June 2016 quarter were released yesterday by Statistics New Zealand..

Under key facts, labour market at a glance.

  • Unemployment down to 5.1 percent in the June 2016 quarter.
  • Large increase in employment but partly reflects improvements to the HLFS, including better identification of self-employed people.
  • Wage inflation remains subdued.

In short unemployment is down, the number of people in employment is up, and wages are hardly moving for most people.


Unemployment down slightly

The seasonally adjusted unemployment rate decreased to 5.1 percent in the June 2016 quarter (from a revised 5.2 percent in the March 2016 quarter). There were 1,000 fewer people unemployed over the June quarter, down to 131,000.

In seasonally adjusted terms, there were 2,000 fewer women unemployed in the June 2016 quarter. Their unemployment rate decreased 0.3 percentage points to 5.4 percent. The unemployment rate for men decreased 0.1 percentage point, down to 4.7 percent.

Unemployment2016June

Employment

The June 2016 quarter estimates suggest employment growth of 2.4 percent (58,000 people), and that the employment rate has reached 66.2 percent. However, some of the changes to the redeveloped HLFS need to be considered when interpreting this quarter’s results. Overall, the new survey appears to be estimating a higher level (or stock) of employment than the previous HLFS.

Employment2016June

Proof of poll movement

With the latest One News poll Colmar Brunton revealed evidence of how much opinion – or the polled measure of opinion – can move over a short time.

One aspect that is usually ignored is that voters may think quite differently during an election campaign as they consider the governing possibilities and they decide how they want to vote – strategic voting has become more common – than how they might think in a spur of the moment poll mid-term.

The main poll question asked was “If a general election was held today, would you be eligible to vote?”

As usual One News show how the seats in Parliament would look if an election ‘was held today’.

But the polling in this week’s poll was done over 6 days, from Saturday 28 May to Thursday 2 June. And the poll was reported on Tuesday 7 June, 10 days after the first day of polling and 5 days after the last day day of polling.

How much could opinion change in that short a time? Quite a lot going by poll numbers split pre-MoU announcement and post-MoU announcement provided by Colmar Brunton:

cku-ghbuoaaoo3x

The Memorandum of Understanding was announced by the Greens on Tuesday 31 May at 3.30 pm.

There is no indication of when people who were polled heard about the MoU, how much they heard about the MoU or whether they heard about the MoU at all before being polled.

There was quite a bit of ongoing discussion and news about the MoU after the polling was complete, especially over the following weekend with coverage of the Green AGM where Green leaders and Andrew Little spoke about the MoU.

And Labour and Green leaders, as well as Winston Peters,  were interviewed about the MoU on Saturday on The Nation and on Sunday on Q+A.

So people who were polled in the last two and a half  days of the polling period, as opposed to the first three and a half days days of the polling, would at best have only based their poll decisions on very preliminary consideration of the implications  of the MoU, if at all.

It should also be noted that the MoU was not the only news over the polling period. Other news may have affected people’s opinions other than the MoU. Assuming that the MoU was the sole cause of a shift in opinion is baseless.

So as far as the MoU goes the before and after poll results should be viewed with a lot of caution.

As well as this single polls in general should be viewed with caution. Trends of one pollster over several months and aggregation of multiple pollsters are generally regarded as much better indicators of public opinion.

And another point – the before and after results show how much opinion measured by a poll can change in a short space of time, a matter of a few days.

NZ First support dropped from about 11% to about 7%, by about a third, a big variation.

Greens support increased by about a quarter, despite it being stated this wasn’t statistically significant I think it is notable.

And Labour support moved over 5%, from 26.1% to 31.3%. We don’t know whether support moved up a further 5% in the next 3 days, or dropped back again, or if the poll was an outlier poll.

All we know from this with any certainty is that polled opinion can change significantly over a short period of time.

Therefore the precise seating arrangements displayed by One News and others, and the ‘analysis’ of what a poll result might mean and why it might mean whatever they claim should be viewed with a lot of scepticism.

Reporting on polls by the mainstream media is usually awful and ignores the realities of political polling.

Single polls are no more than a rough indicator of opinion averaged over a few days.

One last point – a sample size of 1500 is unusual, 900-1000 is far more common.

As far as I understand it most polling results are usually obtained in the initial days of a polling period with the rest of the period used to fill the gaps in their demographic quotas.

So was a mid-poll decision made to increase the number of people being polled by 50%? Polling 628 people in two days seems unusual to me and may make polling variances more likely.

This latest Colmar Brunton poll demonstrates about how much opinion, or the measurement of opinion, can change over time, even over a very short time.

One News Poll – June 2016

One News Colmar Brunton poll for June 2016:

  • National 48% (down from 50)
  • Labour 29% (up from 28)
  • Greens 12% (up from 10)
  • NZ First 9%
  • Maori Party 0.7% (down from 1.1)
  • Conservative Party 0.7% (up from 0.3)
  • ACT Party 0.3% (down from 0.7)
  • Other 0.6% (up from 0,2)

Base(n=) 1,245

Despite the commentary on One News I think it’s far too soon to read much into this result in relation to the Labour-Green Memorandum of Understanding.

Polling was done between 28th of May and 2nd of June, after the budget and with the MOU announcement part way through.

Regardless of that, Labour+Green at 41% is still a long way short of National’s 48%.

ColmarPollJune2016trend

For preferred Prime Minister:

  • John Key 39%
  • Winston Peters 12% (up from 10)
  • Andrew Little 7%

Before and after MoU:

cku-ghbuoaaoo3x

That might surprise and worry some people but I still think it’s too soon to judge much from this poll in relation to the MoU announcement. I’d say that Greens will be a tad anxious.

Full report (PDF)