Unemployment - Lowest since 1977

Tim56

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Unemployment at lowest rate since 1977
15:19 AEST Thu Nov 11 2004

Unemployment has fallen to its lowest level since 1977 and the federal government now believes it can lock in a rate under six per cent for years to come.

The official unemployment rate dipped 0.2 percentage points to 5.3 per cent in October.

The actual number of people out of work fell 21,600 to 545,900, the lowest level since May of 1990.

The fall was led by Queensland, where unemployment dipped to 4.5 per cent from 5.3 per cent.

Unemployment also fell in Victoria (6.0 per cent), South Australia (5.8 per cent), West Australia (4.7 per cent) and Tasmania (6.4 per cent).

The improvement in employment was even more meritorious with the participation rate - the number of people actually in employment or looking for work - rising 0.1 percentage points to 63.7 per cent.

Treasurer Peter Costello said unemployment was now at its lowest level in a generation.

He said structural changes had occurred throughout the economy that meant unemployment could be locked in under six per cent.

"Structurally unemployment has moved down a notch," he told reporters.

"The task is now to lock in unemployment below six (per cent) and move closer to five (per cent)."

He also said the government wanted to continue reforms to increase workforce participation and he warned against wage pressure building up in the economy that could threaten the low unemployment rate.

"If we were to get wage pressure building up in the economy it would threaten the kind of job creation and low unemployment rates (that we have)," Mr Costello said.

"... the worst thing we could do is say we've had this once-in-a-generation result and let's now unleash negative forces."

Employment Minister Kevin Andrews said the outlook for the jobs market suggested further employment gains could be made in coming months.

"While labour force figures can vary from month to month, forward indicators of labour market activity point to further solid employment gains in the months ahead," he said.

...

Excellent news, so long as there is no inflationary effect, which there does not seem to be at this stage. It also demonstrates the absurdity of Labor's IR policy, which sought to undo all the reforms which had made the low rate of unemployment possible, and would have caused inflationary wage increases, as they would not be linked with production. Now all we need is to pass that unfair dismissal legislation and we can make the unemployment rate even lower.
 

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CharlieG

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#5
Anybody can lower the unemployment rate.

The Nazis did it by excluding Jews and women from the workforce, and rapidly expanding the military. The Coalition does it using a dodgy definition of employment, casualisation and low wages.

Congratulations, McTim.
 

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#6
CharlieG said:
Anybody can lower the unemployment rate.

The Nazis did it by excluding Jews and women from the workforce, and rapidly expanding the military. The Coalition does it using a dodgy definition of employment, casualisation and low wages.

Congratulations, McTim.
*Insert clapping emoticon here*

Spot on.
 

Tim56

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CharlieG said:
Anybody can lower the unemployment rate.

The Nazis did it by excluding Jews and women from the workforce, and rapidly expanding the military. The Coalition does it using a dodgy definition of employment, casualisation and low wages.

Congratulations, McTim.
1. The definition of employment has remained essentially unchanged

2. Casualisation of the workforce enables many people who would otherwise not be able to find work, such as parents, especially single parents, and students. It also offers higher rates of pay.

3. Real wage growth under the Coalition has averaged around 2.5%

4. McDonalds only really employs young people, and offers them valuable experience in the workforce, and fair wages. If we didn't have the ridiculous youth minimum wages we have now, youth unemployment would fall as well.
 

Freo Big Fella

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#9
Tim56 said:
1. The definition of employment has remained essentially unchanged

2. Casualisation of the workforce enables many people who would otherwise not be able to find work, such as parents, especially single parents, and students. It also offers higher rates of pay.

3. Real wage growth under the Coalition has averaged around 2.5%

4. McDonalds only really employs young people, and offers them valuable experience in the workforce, and fair wages. If we didn't have the ridiculous youth minimum wages we have now, youth unemployment would fall as well.

1. If you call one hours paid work a week "Employment", I pity you.

2. Can't say I disagree with you here, except for the higher rates of pay.


4. Fair Wages!! That's gold!! $5.00 and lower an hour a fair wage, pure gold!
 

Tim56

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Freo Big Fella said:
1. If you call one hours paid work a week "Employment", I pity you.

2. Can't say I disagree with you here, except for the higher rates of pay.


4. Fair Wages!! That's gold!! $5.00 and lower an hour a fair wage, pure gold!
It always has been one hour per week, so to change now would destroy any historical comparison. In any case, so few people would work one hour per week that it doesn't really matter.
 

Contra Mundum

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#11
"4. McDonalds only really employs young people, and offers them valuable experience in the workforce, and fair wages. If we didn't have the ridiculous youth minimum wages we have now, youth unemployment would fall as well.[/QUOTE]"

Like that poor kid (at another fast food outlet) who was told to clean the extractor fan over an operational deep frier. Somehow I do not think a $10 000 fine was enough

Fair wages - you obviously have never worked there

On the issue of "ridiculous youth wages" - once again you are showing your abject ignorance on this issue. The Federal industrial system has had compulsory junior rates (set at 50% of adult minimum rates) since 1996. You want to set it below half do you Tim? Why not a compulsory birching as well
 

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CharlieG

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#12
Tim56 said:
1. The definition of employment has remained essentially unchanged
The definition is flawed. Regardless of the fact that it has been used for a long time, the fact is that defining one hour of paid work per week as 'employment' severely overestimates the real level of employment.

2. Casualisation of the workforce enables many people who would otherwise not be able to find work, such as parents, especially single parents, and students. It also offers higher rates of pay.
Higher rates of pay? The local KFC pays $5.28 an hour to beginners, with semi-annual pay rises which are generally around 30c. Let's not ignore the lost job security, week-by-week struggle for survival and unpaid overtime that are the by-products of being a casual worker.

3. Real wage growth under the Coalition has averaged around 2.5%
And relative wages among lower income groups - you know, those people that make up the majority of the economy and the minor share of incomes -are falling. Real wages for many low-skilled positions are declining, but as far as the neo-liberals are concerned that's ok, because it doesn't matter to them if income distribution goes to hell.

Take out the exponential growth in executive salaries, and the figures could be interesting, also.

4. McDonalds only really employs young people, and offers them valuable experience in the workforce, and fair wages. If we didn't have the ridiculous youth minimum wages we have now, youth unemployment would fall as well.
McDonald's now has a policy of hiring people in 50+ age bracket, but that's not particularly important. Fair wages? Ridiculous minimum wages? What the hell are you smoking?
 

pazza

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#13
Did it ever occur to anyone that many people in the last month were "employed" to help run the election?

Would be a simple explanation to many things.

Just on the growth of real wages, surely the Government would never, EVER oppose the latest (and probably final) National Living Wage Case, for the lowest paid workers, which is seeking to increase overall wages for that group by $26.50 a week..or roughly a 5th of the average shopping week for those on the borderline of poverty.
 

bunsen burner

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#14
have to laugh at people who refuse to acknowledge the excellent employment record of the current Govt. Forget figures and stats for a minute and just ask yourself these questions:

* in the last 8 years how many times have you been able to ring up a tradesman and get them in straight away? Of course you can always get emergency plummers etc, but every single time during this time (and there are many of them) that I have called a tiler, a floor polisher, an electrician, or any other trady I have had to wait a couple of weeks to get the job done. Plenty of employment for tradesmen.
* How often can you get your car booked in for a service or repairs? There's usually a waiting list for that too.

Anyone who thinks the current Govt has a less than excellent employment record has got rocks in their head. Make claims about the changing of measuring method or anomalies in the method, but whichever way you look at it, unemployment has been low.
 

Tim56

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CharlieG said:
The definition is flawed. Regardless of the fact that it has been used for a long time, the fact is that defining one hour of paid work per week as 'employment' severely overestimates the real level of employment.
The reality is that basically no one works one hour anyway, so the point is irrelevant. One hour of paid work per week means you are employed.

Higher rates of pay? The local KFC pays $5.28 an hour to beginners, with semi-annual pay rises which are generally around 30c. Let's not ignore the lost job security, week-by-week struggle for survival and unpaid overtime that are the by-products of being a casual worker.
They have jobs, so what are you complaining about? Obviously wages will rise as they work their way up. My brother worked at Red Rooster and after about 6 months was made a manager, and got about $18 per hour.

And relative wages among lower income groups - you know, those people that make up the majority of the economy and the minor share of incomes -are falling. Real wages for many low-skilled positions are declining, but as far as the neo-liberals are concerned that's ok, because it doesn't matter to them if income distribution goes to hell.

Take out the exponential growth in executive salaries, and the figures could be interesting, also.
Care to provide evidence to back this up? The reality is, under your system, there would be more unemployment, and more inflation. The deregulated system has provided high wage increases, low unemployment, and low inflation.

McDonald's now has a policy of hiring people in 50+ age bracket, but that's not particularly important. Fair wages? Ridiculous minimum wages? What the hell are you smoking?
Market wages are what they get, and what they deserve.
 

Tim56

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pazza said:
Did it ever occur to anyone that many people in the last month were "employed" to help run the election?

Would be a simple explanation to many things.

Just on the growth of real wages, surely the Government would never, EVER oppose the latest (and probably final) National Living Wage Case, for the lowest paid workers, which is seeking to increase overall wages for that group by $26.50 a week..or roughly a 5th of the average shopping week for those on the borderline of poverty.
People who work on election campaigns are either volunteers or professionals. The parties would have spent at most about $70 million on the campaign, which is a drop in the ocean.
 

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#17
Thank god for the reserve bank then.

But anyway, hawkie had a much higher increase in employment during the 80's, when their reforms really hit pay dirt. Howard and Costello should really get down on bended knee and give thanks to Keating.

The reality is the proportion of the population engaged in full time work has declined in the howard era. Mcjobs indeed.

Not to mention the dodgying up of the numbers with the advent of the privatised job network and the abolition of the CES. All these corporate blood suckers squeezing the unemployed off their books (employment attrition they call it) so they can continue to curry favour with the govt.

Meanwhile the decline in full time employment continues.

Thanks John.
 

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#18
Dippers Donuts said:
But anyway, hawkie had a much higher increase in employment during the 80's, when their reforms really hit pay dirt.
And inflation and high interest rates to go with it.

Howard and Costello should really get down on bended knee and give thanks to Keating.
Wakey wakey, hands off snakey. Are you trying to say Keating's reforms resulted in 8 years of good economic policy? Bit convenient don't you think?


The reality is the proportion of the population engaged in full time work has declined in the howard era. Mcjobs indeed.
The reality is that unemployment has always been low under Howard. Forget the stats, can you honestly say that there has been a shortage of jobs?

Meanwhile the decline in full time employment continues.
people are changing the way they go about things. What makes you think there's this huge increase of people who can't find full time work so have to settle with part time? Me thinks you are full of it.

Thanks John.
Indeed.
 

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#19
No comments on the new wage case Tim or BB?

I'll add another element to this...youth unemployment. I seem to remember it always being around the 26-27% mark..just wondering, what's the update on that.
 

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#20
pazza said:
No comments on the new wage case Tim or BB?

I'll add another element to this...youth unemployment. I seem to remember it always being around the 26-27% mark..just wondering, what's the update on that.
I've made my comments. Feel free to dispute them.
 

pazza

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#21
Only to a point BB..the youth unemlpoyment situation.

We all talk about how unemployment in general is falling..no argument with that.

But, maybe it is the information seeker in me that feels that the breakdown of all of the figures should be released. I note that even in the article at the beginning of this topic, that there is no actual reference to the situation with youth unemployment, despite the fact it would be considered as a problem.
 

Tim56

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pazza said:
No comments on the new wage case Tim or BB?

I'll add another element to this...youth unemployment. I seem to remember it always being around the 26-27% mark..just wondering, what's the update on that.
Not sure about the new wage case. What are they asking for?
 

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#23
pazza said:
Only to a point BB..the youth unemlpoyment situation.
I don't have stats but as far as I know it's traditionally high compared to the rest of society.

But, maybe it is the information seeker in me that feels that the breakdown of all of the figures should be released.
Do you think you'd scrutinise it to the same level if the ALP were in power?
 

pazza

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#24
You had better believe it I would...heck they were in power when I was in high school, so it became a significant topic of discussion in the Commerce subjects I did back then.
 
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