Unemployment is not a threat to property market.

44,000 full time jobs created versus 42,800 part time employment created.

If you were retrenched from your full time job and were then lucky enough to get a part-time job, do you think you would be no worse off financially?

Edit: Thanks Michael. 44,000 full time jobs lost.
 
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essence said:
Another nail into coffin of doom and gloom merchants.
Click to expand...

Hi Essence

Don't get me wrong, I love sticking it to the doom and gloom merchants, mostly because I think they're a group of frothing at the mouth skirt-wearing pansies, but that article wasn't as positive as you'd like to think. It says:

AUSTRALIA'S unemployment rate hit 4.5 per cent in December, with nearly 44,000 full time jobs lost over the month. However part time employment rose 42,800 over the month, meaning total employment fell by 1200.

"What we're seeing a a rotation in employment growth away from full time employment towards part time employment, which is not particularly good for economic growth going forward."

It's the fourth month in a row full time jobs have been cut and part time jobs added.

"What usually happens in employers cut back on hours before they cut back on staff, so if this switch to part time employment continue, that doesn't bode well for part time employment going forward. It means labour market conditions are going to be tougher than they have been for many years."


What that means also is when the economy does turn upwards after the recession has passed that it could well be, initially at least, a case of "jobless growth". Rather than new jobs being created (to reduce unemployment), there will be greater use of existing part-time employees (to reduce underemployment).
 
I think alot of peoples spending relates to their pay, 100 or so workers who worked at the Argyle Diamond mine where laid off yesterday, Im pretty sure they would have had a few investment properties between them all.

Surely something has to give?
 
buzzlightyear said:
44,000 full time jobs created versus 42,800 part time employment created.

If you were retrenched from your full time job and were then lucky enough to get a part-time job, do you think you would be no worse off financially?
Click to expand...

I lost my job in 2001 of which I am very happy. Since I am unemployed I have never been working that hard and has never made anywhere near that amount of money before.

Remembering my career of wealth creation for somebody else, I was retrenched 4 times. Coincidentally - each and every time before Christmas. If this is of any guide, we are largely done with job losses.

Needless to say that I could not be happier with job losses in mining states. It will smoke out all those big buck chasers back to their states which would increase competition in both rental and buyer's market.
 
Chomp said:
I think alot of peoples spending relates to their pay, 100 or so workers who worked at the Argyle Diamond mine where laid off yesterday, Im pretty sure they would have had a few investment properties between them all.

Surely something has to give?
Click to expand...

WA's unemployment rate actually fell in the latest figures. While 100 workers losing there jobs is high profile and may effect public sentiment it does not have a huge impact on statistics. I think a lot of businesses in WA (including mining) had so many problems attracting quality staff they will try to hang in there and not lay people off.
 
essence said:
Needless to say that I could not be happier with job losses in mining states. It will smoke out all those big buck chasers back to their states which would increase competition in both rental and buyer's market.
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I think I read somewhere that over 30,000 of the 44,000 permanent job losses occurred in QLD! :eek:

Might be something in essence's argument...

Cheers,
Michael
 
allblack said:
WA's unemployment rate actually fell in the latest figures. While 100 workers losing there jobs is high profile and may effect public sentiment it does not have a huge impact on statistics. I think a lot of businesses in WA (including mining) had so many problems attracting quality staff they will try to hang in there and not lay people off.
Click to expand...

So they would reduce their dividend payout amounts and watch their share price drop?
 
Chomp said:
I think alot of peoples spending relates to their pay, 100 or so workers who worked at the Argyle Diamond mine where laid off yesterday, Im pretty sure they would have had a few investment properties between them all.

Surely something has to give?
Click to expand...

Yeah, prices for secondhand V8 HSV's dropped $20,000 overnight, Jetski's down $5,000 overnight, big screen TV's buy one get one free, boats down 25%.................

Mostly contractors getting laid off from the reports...so lots of big boys toys for sale IMHO...not much impact on IP's...at least not in WA.
 
allblack said:
I think that's what is happening at the moment!!. Dividends will fall substantially.
Click to expand...

Yes but surely they cant keep doing this, there will come a time when they have to cut staff to keep dividends at a reasonable level.

Otherwise everyone would sell their shares and the company would be just about worthless?
 
Chomp said:
Yes but surely they cant keep doing this, there will come a time when they have to cut staff to keep dividends at a reasonable level.

Otherwise everyone would sell their shares and the company would be just about worthless?
Click to expand...

Agreed to some extent, although I think most (resource) companies in WA will retain their 'good' employees for as long as they can (hopefully until 'the turnaround'),...if your a 'bad' employee you won't have a very secure job.

Just because a company has reduced dividend, won't make it worthless..I'd say people will start buying in if the share price is low compared to asset value....they will buy in hoping for a takeover. This is mostly relevant to resource stocks. I see a lot of sales/takeovers in the next 1-2 years.
 
essence said:
http://www.news.com.au/business/story/0,27753,24915737-462,00.html

Written in usual sensationalists manipulative style, but it really says:

Another nail into coffin of doom and gloom merchants.

It was predicted 20,000 total job loss for the economy, but it managed little disgraceful 1,200. Predictors are off more than 1600%. What a precision.

In other words, US in recession for a full year, and nothing, absolutely nothing happening here.
Click to expand...

Do you *genuinely* believe the sentiment contained in the title you gave this thread? :eek:

Seriously, do you?
 
essence said:
Remembering my career of wealth creation for somebody else, I was retrenched 4 times. Coincidentally - each and every time before Christmas. If this is of any guide, we are largely done with job losses.
Click to expand...

LMAO. I'm going to keep this one for posterity.:eek:
 
If we were arguing about a one-off increase in unemployment or one bad month, then there would be nothing to talk about. The reality is that we are facing unemployment of increases based on who you listen, 6% by years end, and some have predicted 9% by end of 2010.

Irrespective of the numbers, its the trend that is worrying.
 
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