Victoria Takes the Brunt of Job Cuts in Australia

‘Premier Ted Baillieu said Victoria was experiencing a shift from full-time to part-time employment, but expressed concern that much of it might be reflecting under-employment rather than deliberate choices by workers.

Economists warned that there was worse to come, and in a wide range of industries, as the high dollar sends jobs overseas and diminished spending growth contracts jobs at home.

”We expect that over the next few months NSW and Victoria will bear the brunt of the employment correction under way in retail, manufacturing, construction, business services and finance,” said Westpac chief economist Bill Evans. ”As such, we see the labour market weakening further in these states.”’

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Looking at unemployment

I have been getting up to speed with the topic of unemployment in Australia. An overview of the unemployment rate over the last decade:

  • Lots of news stories of job cuts- Toyota, Ford, Rio Tinto, QLD Government
  • And job cut speculation- Fairfax, NAB, Tafe, Macquarie
  • Experts believe unemployment will rise to a max of 6% by the end of the year (ABC News excerpt)
  • Unemployment in June has come down from 6.3% in 2002, to 5.1% in 2012, fluctuating between 6.1% and 4.2% in the years between (ABS Statistics).
  • Job gains in service related areas and mining.
  • Job losses in retail and manufacturing.

An overview of the services provided to the unemployed by the government:

  • There are many services to help you get employed, not many on how to deal with unemployment, or how to be less reliant on your employment. E.g. Youth Allowance, NewStart,¬†Local Connections to Work,
  • There is a focus on youth and the long term unemployed, not so much on the recently unemployed.
  • Many services are finance based with occasional skills training (writing a resume etc.), not focused on lifestyle or upskilling.

Other food for thought:

People groups in ‘barriers to increased labour force participation’

Main reasons for available people not looking for more work

Main difficulties in finding more work