Expect migration to be cut.....
Its looking bleak for the property bulls. Shortage! What Shortage?
Slowdown will put 100,000 jobs at risk
By David Uren and Brad Norington
August 12, 2008 02:45am
Article from: The Australian
* Reserve Bank says economic slowdown will hit hard
* 100,000 jobs are at risk, it says
* Demand for labour already falling
THE Reserve Bank is predicting an economic slowdown so severe that 100,000 people will be thrown out of work in the next 12 months, pushing the unemployment rate to 5 per cent and possibly higher if the financial crisis worsens.
The bank has slashed its forecast for economic growth over the coming year, and expects job creation to slip to its lowest level in seven years.
The economy has been generating jobs growth of 2.5 per cent, or about 250,000 jobs a year, since 2002 to leave the unemployment rate at 4.3 per cent, The Australian reports.
But in the financial year ahead, Australia's central bank expects the economy to generate barely 80,000 new positions, with jobs growth of just 0.75 per cent failing to match the forecast rise in the number of jobseekers.
"With the rate of employment growth expected to remain below that of the working-age population, the unemployment rate is expected to rise," the RBA said in its quarterly economic review yesterday. The bank warned there were already signs that demand for labour was falling.
The RBA forecast was released yesterday as it became clear the Rudd Government's planned abolition of Coalition workplace laws would be delayed well into next year.
The delay, which will deny unfair dismissal claims to thousands of workers and postpone the introduction of new collective bargaining rights, is causing considerable frustration for unions wanting a swift end to John Howard's Work Choices.
But business yesterday welcomed the Government's willingness to take account of economic conditions, and not rush changes that could force employers to deal with union wage demands in a climate of higher unemployment.
Under Labor's election policy, the Government's new industrial relations laws are not due to begin operation in full until January 2010.
But Workplace Relations Minister Julia Gillard had held out the prospect that significant parts of Labor's legislation, including unfair dismissals and other changes, could start this year as soon as legislation was passed.
That possibility has gone, with Ms Gillard confirming Labor legislation currently being drafted by government lawyers could be delayed until the end of the year. Labor insiders say the legislation will be referred to Senate committee hearings, postponing its passage until at least Easter and possibly later.
http://www.news.com.au/story/0,23599,24164929-421,00.html
Its looking bleak for the property bulls. Shortage! What Shortage?
Slowdown will put 100,000 jobs at risk
By David Uren and Brad Norington
August 12, 2008 02:45am
Article from: The Australian
* Reserve Bank says economic slowdown will hit hard
* 100,000 jobs are at risk, it says
* Demand for labour already falling
THE Reserve Bank is predicting an economic slowdown so severe that 100,000 people will be thrown out of work in the next 12 months, pushing the unemployment rate to 5 per cent and possibly higher if the financial crisis worsens.
The bank has slashed its forecast for economic growth over the coming year, and expects job creation to slip to its lowest level in seven years.
The economy has been generating jobs growth of 2.5 per cent, or about 250,000 jobs a year, since 2002 to leave the unemployment rate at 4.3 per cent, The Australian reports.
But in the financial year ahead, Australia's central bank expects the economy to generate barely 80,000 new positions, with jobs growth of just 0.75 per cent failing to match the forecast rise in the number of jobseekers.
"With the rate of employment growth expected to remain below that of the working-age population, the unemployment rate is expected to rise," the RBA said in its quarterly economic review yesterday. The bank warned there were already signs that demand for labour was falling.
The RBA forecast was released yesterday as it became clear the Rudd Government's planned abolition of Coalition workplace laws would be delayed well into next year.
The delay, which will deny unfair dismissal claims to thousands of workers and postpone the introduction of new collective bargaining rights, is causing considerable frustration for unions wanting a swift end to John Howard's Work Choices.
But business yesterday welcomed the Government's willingness to take account of economic conditions, and not rush changes that could force employers to deal with union wage demands in a climate of higher unemployment.
Under Labor's election policy, the Government's new industrial relations laws are not due to begin operation in full until January 2010.
But Workplace Relations Minister Julia Gillard had held out the prospect that significant parts of Labor's legislation, including unfair dismissals and other changes, could start this year as soon as legislation was passed.
That possibility has gone, with Ms Gillard confirming Labor legislation currently being drafted by government lawyers could be delayed until the end of the year. Labor insiders say the legislation will be referred to Senate committee hearings, postponing its passage until at least Easter and possibly later.
http://www.news.com.au/story/0,23599,24164929-421,00.html
