26th October, Wednesday Casualization of the workforce: -Overall employment fell by 10,000 in September,
-Economy lost 53,000 full jobs however 43,000 part-time jobs created. i.e 10,000 full time jobs lost in the labour market. ‘
-Part time workers now make up 30% of workforce, compared to 15% in 1980. Casual workers make up 20% of workforce compared to 15% in 1990s.
-Evidence of casualisation of the workforce -> Less Income security, underemployment (people wishing to work more but are not given opportunity), denied access to benefits such as sick leave and annual leave
-Unemployment recently fell to 5.6% (from 5.7% in August) due to the fall in participation rate to 64.5%, its lowest in 2 years- Lots of hidden unemployment as people give up looking for job and leave the workforce. Means that market is inefficient- does not capitalize on all available labour resources.
-Employment growth is slowing; Underlying weakness in the labour market- Higher wages means that Aus. is not competitive on most of its exports therefore must rely on imports (more leakages than injections so slower overall economic growth). Lower Economic growth, less supply of jobs but an over demand to be employed.
-Job numbers may contribute to RBA’s intention to cut cash rate; Monetary Policy to lower price through lower interest rates, stimulate aggregate demand, higher demand for labour to become more productive and increase supply to meet demand. However, doubt RBA will cut already low cash rate of 1.5% as RBA may wish to wait for more signs of slowdown in labour market and especially with the low inflation rate of 1%.
Lucy Turnbull’s Three-City Sydney Vision to boost job growth: -Reshaping cities in Sydney, Eastern Harbour City, Central Parramatta River City and Western city, near proposed new airport at Badgery’s Creek – Businesses may move to these cities to capitalise on new infrastructure, creating jobs.
-Forecasted population growth outgrowing job growth
- “Opportunities have to be well distributed through our city so we do not become congested” (Lucy Turnbull)
- By 2041, expects that 680,000 more jobs in the east than the west of NSW; Sydney CBD has 10 times number of jobs than any other place in Sydney. Uneven job distribution.
-$20 Billion on metro rail line to be completed in 2024, running from Rouse Hill, Chatswood, CBD, Sydenham and Bankstown. Increase in infrastructure, improve quality of life and productivity (more efficient transportation).
Articles and statistics analysed:
http://www.smh.com.au/business/the-economy/jobless-rate-slips-in-parttime-boom-20161020-gs6tze.html
https://www.theguardian.com/business/grogonomics/2014/oct/17/the-casualisation-of-australias-workforce-is-nothing-to-panic-about
http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/4102.0Main+Features50Dec+2009
http://www.smh.com.au/nsw/lucy-turnbulls-threecity-sydney-vision-challenged-by-forecasts-of-jobs-growth-in-east-20161019-gs6fky.html