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Using job transitions data as a labour market indicator

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The Reserve Bank of New Zealand (RBNZ) is now mandated to support the maximum sustainable level of employment. This new objective has lead us to look for new sources of data that allow us to better understand and predict labour market outcomes. We use data measuring the changes in employment states of all tax-paying New Zealanders to nowcast the unemployment rate in New Zealand. We find that using this wide-coverage data set helps us to estimate current unemployment more accurately than the standard forecasting benchmarks.

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  • Christopher Ball & Adam Richardson & Thomas van Florenstein Mulder, 2020. "Using job transitions data as a labour market indicator," Reserve Bank of New Zealand Analytical Notes series AN2020/02, Reserve Bank of New Zealand.
    • Handle: RePEc:nzb:nzbans:2020/02
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    1. Richardson, Adam & van Florenstein Mulder, Thomas & Vehbi, Tuğrul, 2021. "Nowcasting GDP using machine-learning algorithms: A real-time assessment," International Journal of Forecasting, Elsevier, vol. 37(2), pages 941-948.
    2. Diebold, Francis X & Mariano, Roberto S, 2002. "Comparing Predictive Accuracy," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 134-144, January.
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    4. Terasvirta, Timo & van Dijk, Dick & Medeiros, Marcelo C., 2005. "Linear models, smooth transition autoregressions, and neural networks for forecasting macroeconomic time series: A re-examination," International Journal of Forecasting, Elsevier, vol. 21(4), pages 755-774.
    5. McAdam, Peter & McNelis, Paul, 2005. "Forecasting inflation with thick models and neural networks," Economic Modelling, Elsevier, vol. 22(5), pages 848-867, September.
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