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So Much For China? Aussie Unemployment Misses By Most On Record, Surges To 12-Year Highs

Tyler Durden's picture




 

But... China's manufacturing PMIs said everything's great in the mal-investment capital of the world? It appears for all the record credit creation in China, none of it is spilling over into demand from its closest trading partners. Australian unemployment spiked to 6.4% - its highest since 2002, missing the 6.0% expectation by the greatest margin on record. No "qualified' economists believed the print would be above 6.1%. AUDJPY is getting battered which implicitly means S&P futures have legged lower...

 

Ugly...

 

And AUDJPY uglier..

 

Chart: Bloomberg

 

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Wed, 08/06/2014 - 22:02 | 5057040 SHEEPFUKKER
SHEEPFUKKER's picture

You'd think they would have learned how to fake their employment numbers down under by now. wtf!! Get on the program or your country will be liberated!!

Wed, 08/06/2014 - 22:08 | 5057060 Say What Again
Say What Again's picture

The AUDJPY pair has had a strong correlation to SP500, and usually is a leading indicator.  Thursday will be interesting. 

Thu, 08/07/2014 - 00:06 | 5057471 Save_America1st
Save_America1st's picture

WATCH and LISTEN then PASS IT ON.  Excellent interview with Marine Colonel Pete Martino:  I See Something!

This is the TRUTH, "Folks"!!!

https://www.youtube.com/watch?v=OUTXnnVTInA

Thu, 08/07/2014 - 02:57 | 5057718 Squid-puppets a...
Squid-puppets a-go-go's picture

The aussies do manipulate their unemployment data (excluding those who have given up looking) but because their unemploymnt benefits dont drop off at 100 or 50 weeks like in the US, the fabrication isnt as foolproof

Thu, 08/07/2014 - 04:17 | 5057810 Oracle 911
Oracle 911's picture

I bet, Friday close will be green.

Wed, 08/06/2014 - 22:09 | 5057070 max2205
max2205's picture

Australia is fucked

Wed, 08/06/2014 - 22:10 | 5057076 Say What Again
Say What Again's picture

I thought they were talking about Austria

</sarc>

Wed, 08/06/2014 - 22:18 | 5057098 Grande Tetons
Grande Tetons's picture

Australia is fucked because China is fucked because the USA is fucked...... nice big connectivity of fuckedness. 

Wed, 08/06/2014 - 23:01 | 5057279 NoDebt
NoDebt's picture

"...and the sheep are nervous."

I think that works on multiple levels in this situation.

Thu, 08/07/2014 - 03:27 | 5057778 Ides of November
Ides of November's picture

More a NZ thing, but anyway...

Big headlines this week in Oz is about the following.

Front page news. Don't know about this unemployment stuff. Plenty of beaches around here you know.

Brutus the monster crocodile eats bull shark in Northern Territory

Read more: http://www.smh.com.au/environment/animals/brutus-the-monster-crocodile-eats-bull-shark-in-northern-territory-20140806-100xwq.html#ixzz39gmAJhyd

Thu, 08/07/2014 - 00:56 | 5057570 Captain Jack Sparrow
Captain Jack Sparrow's picture

Fuck yeah we're fucked.  Plus we just brought in a rule where all people on welfare have to apply for 40 jobs a month to continue receiving welfare.  Can you imagine the fucking nightmare that is going to cause for employers placing job advertisements having to sort through thousands of applications from people that are applying that don't even want the job!

Thu, 08/07/2014 - 02:51 | 5057708 Bingo Hammer
Bingo Hammer's picture

You forgot to mention we have our very own, special "Aussie Deluxe" version of IDIOT-in-Chief (PM Tony Abbott) and his conga line of sychophantic US Congress-like sociopaths. For shits sake, I thought PM Gillard and PM Rudd were appalling and a disgrace for Australia but apparently Abbott is hell bent on lowering the bar to the level of total fiasco, as soon as possible

Thu, 08/07/2014 - 03:16 | 5057755 Kawaii Empress ...
Kawaii Empress Natalia Poklonskaya's picture

Yeah he is something special our Tony isn't he? Trying to introduce same spying shit as the NSA, well Tony guess what, FUCK YOU!

Thu, 08/07/2014 - 06:34 | 5057894 thestarl
thestarl's picture

This arsehole Abbott's wet dream is to be a wartime PM, might get that one.

Wed, 08/06/2014 - 22:15 | 5057073 Conman
Conman's picture

Don't worry, Reserve Bank of Australia is dovish for QE (after trying ZIRP ala the Fed). Not kidding btw, they have already pre-communicated it which means its coming down under.  Mutual financial destructiion.

Wed, 08/06/2014 - 22:53 | 5057256 The Most Intere...
The Most Interesting Frog in the World's picture

But if they don't do QE and ZIRP 1 bedroom condos will drop down below $1 million and that's just not fair.

Wed, 08/06/2014 - 23:29 | 5057377 Conman
Conman's picture

The Ponzi must go on at all costs.

Wed, 08/06/2014 - 23:42 | 5057390 tickhound
tickhound's picture

And this is exactly the reason I continue to be amazed at all the "amazed" who can't believe we do crazy shit. It's like everything is a fucking surprise... Like let in everybody on two legs into the country, or incarcerate record numbers of citizens, or sterilize vegetables and ban front lawn gardens... Or just raise your hand if you want a higher education, or a freaking house.

Wed, 08/06/2014 - 22:24 | 5057117 Mentaliusanything
Mentaliusanything's picture

We faked (Buried) them for so long, that in the end even though they cram down on the lid, its bubbling out.

Have you not noticed the Mining investment boom is over and even with the resultant output surge the prices taken are going into reverse. Vis a Vis trade surpluses are now deficits that are slowly getting redder and redder.

But thats OK we have Kangaroos and sky high house prices, so we are different. 1990 was our last downturn- 24 years!!

The next Recession will be a doozy.

Thu, 08/07/2014 - 06:56 | 5057921 disabledvet
disabledvet's picture

We'll see. Oil prices are getting hammered while the dollar remains pretty much worthless. Plus we do make fuel cell batteries in the USA, have built out an infrastructure and vehicles for using them and are producing the hydrogen to power them.

This is not complicated technology either.

Wed, 08/06/2014 - 23:00 | 5057280 junction
junction's picture
Australian politicians had better worry more about those now missing jobs than that missing flight MH370.  "Australian government is 'cautiously optimistic' about finding MH370 as new $52 million phase of the search begins" http://www.dailymail.co.uk/news/article-2717275/Underwater-vehicles-search-sea-floor-missing-MH370-plane.html#ixzz39fgC7AcG
Wed, 08/06/2014 - 22:04 | 5057042 Bill of Rights
Bill of Rights's picture
And the next country to join the renminbi fan club is

 

http://www.sovereignman.com/trends/and-the-next-country-to-join-the-renminbi-fan-club-is-14829/

 

When you think about “strong banking”, what country comes first to mind?

A few years ago, the most obvious answer would be Switzerland.

Today, however, Switzerland’s reputation for banking is nowhere near where it once was.

Starting in 2009, the US, as chief financial bully, led the charge in assaulting the country’s banking sector and dragging it down brick by brick.

The pummelling has continued ever since, culminating in the end of banking secrecy in the country altogether.

Wed, 08/06/2014 - 22:08 | 5057052 CheapBastard
CheapBastard's picture

Median Australian House Price (2012) = $635,000 (USD)

Median Australian Income (2010) = $28,000 (USD)

 

See the problem?

 

Remember, also, the average truck driver in Australia makes more then the Heart Surgeons there (ZH article awhile back). Also, remember when Barry was handing out that $8,000 "incentive" to buy a house when the housing crash occurred ?  Australia was handing out twice that; $16,000.

Wed, 08/06/2014 - 22:23 | 5057119 Space Animatoltipap
Space Animatoltipap's picture

Why so negative? Follow happily the NY/London axis of honesty and friendliness.

Thu, 08/07/2014 - 07:49 | 5057944 Curiously_Crazy
Curiously_Crazy's picture

I've never had to say it around here. But you're just making shit up! Median in AU was A$66,820 way back in 2008 or around US$62,800 at the current exchange rate; not long ago when $AU was above parity it would have been nearer $70,000 US. Furthermore, unlike the US our wages have actually grown since then..

Yes, housing is rediculously expensive (like Canada) but you don't need to bullshit to get across a point.

EDIT: for the lazy https://en.wikipedia.org/wiki/Median_household_income_in_Australia_and_N...

EDIT2: Ok that's for households - way back in 2008. Let's look at individuals at 2013: $1,437 per week or $74,724 a year!

 

 

Wed, 08/06/2014 - 22:08 | 5057061 Muppet
Muppet's picture

Down under most estimates

Wed, 08/06/2014 - 22:09 | 5057068 Navymugsy
Navymugsy's picture

Crikey mate!

Wed, 08/06/2014 - 22:11 | 5057074 TheRideNeverEnds
TheRideNeverEnds's picture

hey since they are on the bottom of the world isnt down for them up for us?  

 

I think you know what that means..... BUY BUY BUY!

Wed, 08/06/2014 - 22:12 | 5057079 The_Prisoner
The_Prisoner's picture

It's by design. Australian Treasure wants higher unemployment to reduce wages.

 

Wed, 08/06/2014 - 22:21 | 5057105 Space Animatoltipap
Space Animatoltipap's picture

Germany, France, GB, Italy, China, Japan, Australia etc. all deteriorate greatly but the US just goes on increasing its perfomance day by day like some invinsible Super Hero. It's funny how many believe the Animal Farm managers. But I am truly sorry. Of course it's true when real estate goes bezirk in the Animal Farm axis of NY/London the rest of the world is doing fine. Sometimes you see a Bentley in the slums of Lagos ...

Wed, 08/06/2014 - 23:18 | 5057344 Never One Roach
Never One Roach's picture

Wait until the World Bank gives them $200 million for Ebola. You'll see three Bentley's for each African politican.

Wed, 08/06/2014 - 22:22 | 5057113 Atomizer
Atomizer's picture

It has to be weather related. That Damn southern ice pole is killing mall rat spending 

Wed, 08/06/2014 - 22:30 | 5057153 Salsipuedes
Salsipuedes's picture

Same playbook, different day. https://www.youtube.com/watch?v=vguWtkgO360 

"And they sang as they sat and waited by the billabong, New Zealand and Canada will be singing America's tune soon too." Thanks Queen Mum you fucking whore and every scumbag who ever kissed your blood diamond ring.

Wed, 08/06/2014 - 23:08 | 5057310 Yen Cross
Yen Cross's picture

  The Australian labor participation rate went up which contributed to the higher unemployment rate. Part time unemployment went up, but full time unemployment decreased by 14.5K which was a large beat. At first glance the numbers look horrible, but once you dig deeper they aren't nearly as bad.

   The ponzi U.S. BLS hides the true unemployment figures in the shitty participation rate.

Wed, 08/06/2014 - 23:12 | 5057324 The_Prisoner
The_Prisoner's picture

Correct.

Full time job losses are mostly federal public servants. The mood among the unelected parasite class in Canberra is grim. How are they going to pay their $600k mortgages?

No sympathy from me.

Wed, 08/06/2014 - 23:19 | 5057349 Aussiekiwi
Aussiekiwi's picture

Part time unemployment is not voluntary, its due to the economy slowwly going belly up.

Wed, 08/06/2014 - 23:16 | 5057338 Aussiekiwi
Aussiekiwi's picture

Its an Interesting country, nipped up to Sout east Brisbane a while ago and there was so much expansion going on it was unbelieveable, came back to Perth and it was dead, got the news last week, 50 people going from various departments in my company. I understand talking to miners, that there is still work in Queensland but Perth is dead now. Housing still horribly over priced here.

Wed, 08/06/2014 - 23:18 | 5057347 Aussiekiwi
Aussiekiwi's picture

Mind you there has been an unusual amount of rain in Perth (also called winter) lately, so maybe the weather is to blame.

Wed, 08/06/2014 - 23:31 | 5057383 The_Prisoner
The_Prisoner's picture

The signal is when the economic migrants (457's) start leaving.

Australia's version of Mexican labour.

Thu, 08/07/2014 - 07:35 | 5057967 Curiously_Crazy
Curiously_Crazy's picture

Hate to be contrarian, but as a surveyor working in Perth on both an engineering and cadastral level - that is to say construction as well as subdivisions - I can't say the same thing. Glad I never got into mining (well - I did for a bit but hated it, decided to stay in Perth).

The overall economy is going to shit. We all know that. But it's not as gloom as doom as everyone makes out just yet!

Wed, 08/06/2014 - 23:25 | 5057363 Never One Roach
Never One Roach's picture

Prices there are literally out of sight. I think their Bust may be pretty bad or worse then some other places where the stellar rise was not as great. I visited my friend and his Mom three years ago outside Sydney. They are kind of....mmm...hermits. When I told her what her house was worth $2.4 million, she could not beleive it....promptly sold it and is now comfortable renting. She says she'll buy it back when the Bubble bursts. She origianlly paid less then $300k for it in the 1990's she said.

 

Who knows ... with the massive maniplation of the markets? She might be able to buy four or five of those houses when the housng market crashes?!

Wed, 08/06/2014 - 23:46 | 5057413 Aussiekiwi
Aussiekiwi's picture

I was on transfer to Sydney for work for 4 years, I rented an old statehouse which had had nothing done to it in Marsfield, it went on the market 3 times while I was there each time for at least 200 K more than the last, the open homes were amusing 90% Chinese trooping through every single time, most could not speak English and had an English speaking Asian with them.

This was at a time when the Government was swearing the housing boom was not being driven by asian investment, lying bunch of dirt bags, every time I swore this old state house would not sell for what they were asking for it and every time it did, just before I left this old statehouse sold for over a million, they knocked it down a year later and put up a 2 story block construction, looks awful, obviously it was the land that had the value, but only 600sqm, on the low side of the street below road level with no views, and Marsfield is not that close to Sydney.

Wed, 08/06/2014 - 23:44 | 5057419 The_Prisoner
The_Prisoner's picture

Although the media does not talk about it, inner Sydney rental vacancies are starting to rise fast.

My rent hasn't risen in 3 years. Up to 2 years ago you could never get an agent on the phone or to answer an email when trying to rent a place so high was the demand. They would simply schedule a 45 minutes inpection of the place in which you had to turn up and "apply" to rent it. It was worse than a job interview. Now they are strugling to find tenants, and you see for lease signs on residential properties for months.

The high auction activity is due to investors selling to each other. It's a game of musical chairs in which they themselves play the the music. It can keep going for a long time, as long as no one blinks.

 

Thu, 08/07/2014 - 02:06 | 5057667 Aussiekiwi
Aussiekiwi's picture

Rents have dropped a lot in perth as well, there is also a massive apartment glut here, generally not talked about but you only have to drive down burswood at 8pm and see how few apartments have any lights on to realise how few are actually occupied in those massive apartment blocks .

Thu, 08/07/2014 - 02:18 | 5057674 denverdolomte
denverdolomte's picture

Company I'm interviewing with has a corp. office in Sydney, been looking moving back when I run the comparison to what Denver, CO is like these days!

 

400+ people moving to this state a day, rentals at 99% capacity, in a city that refuses to expand. Fun times. 

Thu, 08/07/2014 - 04:39 | 5057823 Artifice
Artifice's picture

What do we expect though? We've gladly soaked up the spare chinese wealth, which has mainly been jammed into real estate. Of course, now a family home is a pipe-dream rather than simply unrealistic for most of us.

 

Thing is - these properties aren't being leased. They're just sitting empty, slowly rotting. I don't know why, but I put my money on horrible investment advice to the chinese middle class.

 

How can so many people be making the same stupid decisions? Spend some time on the roads and you'll have your answer.

Thu, 08/07/2014 - 00:42 | 5057545 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

The Chinee get off the plane down here and they can tell right away there is actual air to breathe and clean water to drink and safe food to eat. Their next stop is the real estate office. They also love to send their kids here to learn English. The Lucky Country it is and will remain and I am extremely glad I said goodbye to the US 8 years ago. Despite the Neanderthal Prime Minister at the moment, that is, still miles better than Obomba.

Thu, 08/07/2014 - 02:27 | 5057686 TeraByte
TeraByte's picture

Australia is a banana republic/monarchy overexposed to China´s fortunes. The resources boom "that is decades to stay" is no more and the country is predestined to repeat boom and bust cycles forever. In 1945 after from a total devastation of WWII Taiwan was backward agricultural society, which advanced into to high tech in couple decades while Australia missed all the trains juggling and still juggling with products with no added value. The treasurer seem to be one of very few, who realize this and not surprisingly is deeply concerned. Only idiots and there are many sing praise to the widening gap between income and inflated housing price. This leads into increased borrowing, that will rely on declining resources revenue. No country before either has grown rich by selling bananas.

Thu, 08/07/2014 - 02:59 | 5057721 Bingo Hammer
Bingo Hammer's picture

Who knows, maybe bananas will become the new reserve currency soon because even though they're a perishable item, you still cant print them into existence at the press of a button....Long Live the Banana Republic of Aus-Asia

Thu, 08/07/2014 - 03:23 | 5057772 Ides of November
Ides of November's picture

Roy Morgan Research (Australia's largest INDEPENDENT research organisation) provides a much more accurate reading of Australian Unemployment (10.2%) and Under-employment (8.7%).

Total of 18.9% Unemployment or under-employment in Australia. Much closer to reality.

It did go down this month, but has been far far higher (and more accurate) than the ABS figures since at least 2010. Roy Morgan doesn't seasonally adjust its figures to "smooth" the results. It just provides the facts on the ground. Not good Down Under.

http://www.roymorgan.com/morganpoll/unemployment/estimates-detailed

http://www.roymorgan.com/findings/5717-roy-morgan-australian-unemploymen...

Thu, 08/07/2014 - 06:45 | 5057907 thestarl
thestarl's picture

The Murdoch Press control >75% of the print media in this country not to mention the current government.

Thu, 08/07/2014 - 08:04 | 5057996 butchtrucks
butchtrucks's picture

The quality of political leadership in Australia is abysmal. 

Check out the country's Attorney General George Brandis in an interview last night about the Government's plans to monitor everyone's internet activity. The most embarrassing interview you are ever likely to see. Completely clueless. Jibbering fool.

https://www.youtube.com/watch?v=VUNxYdq_ynk

Fri, 08/08/2014 - 05:30 | 5063909 MOB666
MOB666's picture

Look at Gladstones rental market..

http://www.realestate.com.au/rent/in-gladstone+-+greater+region,+qld/list-1

considering you used to pay about 800 for a 4 bedder per week.. its looking grim there now since the works dried up

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