Overall, we've gained about 185,000 jobs over the year...
Population growth is about 300K but they're not all adults so we can't expect them all to be working.
The trend towards a more flexible workforce is a good thing.
Who wants to be locked into a full time job when there are so many opportunities to freelance and work part time?
It's all good.
But go and have a closer look at how many were part time and how many were full time.
We have been losing a lot of full time jobs lately. And this trend is looking to continue for some time.
Is it really that surprising when our wages here are so high by comparison to everywhere else ?
When you see how many full time jobs have been dissapearing lately, and consider the wages that go with that, it is inevitable that consumer spending will slow down. These results will filter through in future economic reports. We can see they pretty much already are. As a member pointed out earlier, when rba rates were 2.5% our cpi was 2.8%, yet now rba rates have dropped another 1%, instead of increase cpi as hoped, cpi has dropped another 1.8% to 1%. What this does show us is that these rba cuts appear to be having little effect. They are not working as hoped. Considering this, will the little rba cuts we have left, and what little the banks are passing on, really make that much difference. The lower the rates go, the more debt people seem to take on. The result here is that spending in the overall economy is further reduced, and over even longer periods of time. We have seen it mentioned on the forum before that the more mortgage debt we have, the more spending is further reduced throughout the greater economy. All this ,combined with quite a large number of full time jobs losses over recent times, appears to be starting to have an effect on the economy. That is being shown with the recent 1% cpi number despite two cuts this year and last year.
We see some cheering further interest rate declines, funny enough, sometimes bears, sometimes bulls. Its sort of a catch 22 and exactly why we sometimes see both sides cheering on further cuts. The catch is this, some wish rates to fall because they expect it will increase further borrowing and increase the value of their home. The down side to this is that all those retirees get less return on their savings. The increased borrowing over recent times has pushed oversupply and seeing many rents now flat or falling. All those retirees with rental properties in Perth for example, are seeing their returns drop by quite some way. They all then have less to spend throughout the economy, this results in buisiness profit declines and further job loss. More full time jobs go, more wages go.
Pretend for one moment that we are already at zero rates, ( because that is where we may be soon, or where we may as well be now such is the effect they are now having) now what happens ? We have no room to lower, full times jobs are going, oversupply is pushing rents down right across the country.
Isn't it great that Australians can earn even more money while transitioning to more flexible working arrangements and part-time work? Given the choice of earning $100,000 by locking myself into a full time job, versus earning $102,100 for flexible part-time work, I think the part-time option sounds much better.
And the NSW unemployment rate is down to 4.9% Ted. How does that fit into your imminent Sydney crash narrative?
Sydney house prices already up 65% since you sold your home, with maybe another 40% more growth to go before this boom ends.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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