Fed: Employment indicator falls under GST

AAP General News (Australia)
08-09-2000
Fed: Employment indicator falls under GST

CANBERRA, Aug 9 AAP - Employment could be set for a downturn, with a government indicator
falling for the fifth month in a row in June.

The DEWRSB leading indicator of employment fell below zero for the first time since
late 1997, with the pace of the decline increasing.

However, the Department of Employment, Workplace Relations and Small Business (DEWRSB)
warned the survey may have become unreliable due to the GST.

"The DEWRSB Leading Indicator fell for the fifth consecutive month in June 2000, primarily
due to weakness in both new motor vehicle registrations and new dwelling approvals," DEWRSB
said.

"Both these series, however, have been affected by transitory effects related to the
introduction of the GST."

DEWRSB said this meant it's usual guideline that six consecutive movements in one direction
indicated change in employment growth, may not be reliable.

AAP ss/it

KEYWORD: EMPLOYMENT

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