So much for the enviable economy :(

http://www.abc.net.au/news/2011-08-23/merrill-lynch-predicts-major-job-losses/2851552?section=business


Quote:

Bankers predict 100,000 jobs to go New forecasts from investment firm Bank of America Merrill Lynch say another 100,000 Australian jobs could be lost from the economy by March next year. The research also predicts unemployment could rise from 5.1 per cent to 6 per cent over the next six months. It says that means the Reserve Bank will have to cut interest rates by November. The analysts say financial conditions in Australia are now as tight as at any time since the 1990s. The bank followed economists at Westpac, Goldman Sachs and Deutsche Bank in predicting a rate cut after the unemployment rate rose unexpectedly in July. Federal Treasurer Wayne Swan concedes there will be further job losses in the Australian economy. Yesterday, BlueScope Steel announced it would cut 1,000 jobs and end steel exports. The company blamed the Chinese yuan, saying the currency was artificially low and meant importing Chinese steel was cheaper than buying local products. Mr Swan has admitted there will be "painful adjustments" ahead for some sectors. "Well certainly there will be changes in employment, there are changes in employment across sectors all the time. Our economy has evolved over years and there are always changes in employment," he said. Prime Minister Julia Gillard says she is not going to endorse Merrill Lynch's forecasts. "I'm not endorsing any of these projections that we're seeing in today's newspapers," she said. "We believe that we can work with manufacturing so that it's got a bright future in this country." Ms Gillard says sections of the economy are under great pressure, and some traditional industries will need to change.

[quote author=thelastnail link=1314066673/0#0 date=1314066673]So much for the enviable economy :(
]

Its the power of our economy that is causing this structural change.

The mining boom is causing us to become one of the richest countries on earth (per capita), and that means any manufacturing industry that exports is basically stuffed.

We are faced with two choices.
- Restrict the mining boom by increasing costs (ie tax it) to support other parts of the economy, and ensure the economy is balanced.
- Ride the mining boom like a wild stallion, and pour all our resources (money, people) into mining, and make as much money as we can.

We are at the cross roads now. Which way to go.   Its going to be hard to avoid number 2, and that will have a massive impact when then boom busts.

Quote:

Gillard says ........... ............"We believe that we can work with manufacturing so that it's got a bright future in this country.".........

hahahha - every industry they have touched they have destroyed.

Hi Nail,
That's not good news.
I could be down at Centerlink before long with people
like Longweekend trying to jump through hoops to
get a lousy $234 a week.  :'(

Bobby. wrote on Aug 23^rd, 2011 at 1:00pm:

Hi Nail, That's not good news. I could be down at Centerlink before long with people like Longweekend trying to jump through hoops to get a lousy $234 a week.  :'(

yeh there would be plenty of familiar faces down at center link ;)

Sprintcyclist wrote on Aug 23^rd, 2011 at 12:52pm:

Quote: Gillard says ........... ............"We believe that we can work with manufacturing so that it's got a bright future in this country."......... hahahha - every industry they have touched they have destroyed.

Can you name one ?

Mining:  Booming
Telecommunications:  Booming.
Education: Booming.
Renewables: Booming (but being destroyed by State liberals).

The only ones they havent touched are Farming, Manufacturing and Tourism, and they are the ones struggling.... all because of the high $.

Investment banks work on feast or famine.

In London my wife was a direct employee of Deutsche Bank, she was made redundant, paid out over 50k GBP, then re-hired on a contractor rate that was HIGHER than what she had as a full time employee.

Go figure.

So when they say 'jobs will go', it's not always what it seems.
We didn't complain though.

Work the system and the system will work for you  ;)

Andrei.Hicks wrote on Aug 23^rd, 2011 at 2:24pm:

Investment banks work on feast or famine. In London my wife was a direct employee of Deutsche Bank, she was made redundant, paid out over 50k GBP, then re-hired on a contractor rate that was HIGHER than what she had as a full time employee. Go figure. So when they say 'jobs will go', it's not always what it seems. We didn't complain though. Work the system and the system will work for you  ;)

Andrei - you seem to have so much time to post here that
often I wonder if you're a Centerlink recipient.  ;)

Bobby this is the first time I have been on here in 3 days, and its ten before midnight you clown.

What are you doing in the middle of the Australian day on there???

Andrei.Hicks wrote on Aug 23^rd, 2011 at 2:49pm:

Bobby this is the first time I have been on here in 3 days, and its ten before midnight you clown. What are you doing in the middle of the Australian day on there???

Yes - during afternoon tea break at work.
You know what I mean - WORK !

They are only predictions, with the volatility in the market at the moment there is a very good chance these prediction will turn out false.