You, Me and Employment
by the Nine2Three Finance Teamwww.nine2three.com.au
Unfortunately, recent economic data shows the unemployment rate in Australia has jumped from 5.4% in February to 5.6% in March, the highest level in more than three years. The good news is 11,599,900 of us remain employed and paying taxes. We expect unemployment to continue to rise during 2013, which will potentially increase the chances of a further interest rate cut before the September election. But the significant issue for me and you is where in Australia is unemployment rising and in what industries.
Well, we do not recommend you go looking for work in Tasmania. In March, Tasmania recorded the biggest rise in unemployment, increasing to 7.3% (which is much better than Europe where unemployment remains stuck fast at 12% but that’s another story for another day). We are definitely seeing limited hiring and even a shedding of some jobs in construction and manufacturing sectors. Most manufacturers are still doing it tough due to the high Aussie dollar, uneven economic conditions and higher energy costs. But the ‘biggest loser’ is the mining and mining services sector in West Australia. After a dream decade of strong demand and big profits, slowing economic growth in China is causing a big pull back in earnings and jobs, particularly among the coal and iron ore mining companies.
The Reserve Bank believes the substantial interest rate cuts during late 2011 and 2012 are beginning to have an expansionary effect on the domestic economy, with business and household spending slowly increasing. While we are unlikely to see any significant deterioration in the economy and employment we are also unlikely to see any significant improvement until at least mid 2014.
Looking forward to hearing Craig James, Chief Economist for Comm Sec presenting at Australia's Biggest BUSINESS Morning Tea on Economy 2013/2014 - Embrace The Opportunities.
This Article is supplied by the Nine2Three Finance Team.
Important Note: These articles have been prepared for general circulation and are circulated for general informational purposes only; these articles should not be regarded as business or investment advice. The articles represent the views of the writers and are subject to change without notice. Additionally, while every care has been taken in the preparation of the articles no representation or warranty as to accuracy or completeness of any statement is given. An individual or organisation should, before any business or investment decision is made, consider the appropriateness of the information in this document, and seek professional advice, having regard to objectives, situation and needs. This document is solely for the use of the party to whom it is provided.
HAVE YOUR SAY!