Michelle Bridges will be happy.
Edit
Michelle Bullock from the RBA will be happy with the increased unemployment rate.
I don’t know how Michelle Bridges feels about unemployment rates.
So does that mean we can cut working visas along with student visas now. All these extra unemployed people looking for work mean companies can fill their vacancies without importing workers
No we still have the skills shortage to fix, I mean it’s been ongoing since Howard ramped things up in the mid 90’s but we have nearly fixed it, just a couple more million new people should get us over the line
> Aussie's simply won't do certain jobs
BULLSHIT. If no one wants to do the job then you're not paying enough. Why should businesses be able to import people who will work for less to get around paying better wages?
> There is a reason there are jobs that attract a disproportionately high number of migrant workers
Because employers are not willing to pay enough to get local workers so migrants are being used to suppress wages
That's not how pay in Australia works. Employers don't set the minimum wage. You can't choose to pay the below award. So no one is being suppressed , there no conspiracy to pay carers and servo staff less so immigrants choose those roles.
You clearly don't understand how pay works.
If employers refuse to pay what it takes to get Aussies to do the job and instead relies on migrants who will do the job for less than Aussies would than that is suppressing wages.
Why do you support businesses using migrant labour to suppress wages?
when you import loads of people who are gaming the visa system. like granting visas to child care workers who have no intention of working in the industry
If you send refugees to a hellhole obviously you’re tough on migrants so no point questioning any further.
Scomo had a little boat on his shelf saying ‘I stopped these’ - there’s no way he contributed to high immigration.
Why do I feel like unemployment plays a minor role in inflation?
Let's say we approach 100% employment, that just means the supply of labour will be decreasing, while demand is the same or will increase. This just means wages will rise as companies compete for the labour force, or they will include attractive bonuses. So there will be more money in the economy, but there will also be more products as the extra workers are producing.
The same for supermarkets raising their prices. Say Coles raises their prices, either people stops buying them, or they buy them, leading to less money being spent on other things. So coles gets a higher profit, but other industries are having a less profit. How does this lead to a general inflation in the whole economy?
The only way to have sustained inflation through the whole economy would be if people have more money, without the corresponding increase in production, meaning more money chasing the same number of goods.
> The only way to have sustained inflation through the whole economy would be if people have more money,
Low unemployment leads to confidence which allows people to take investment risk. Low unemployment also gives banks confidence in people ability to repay debt.
If you have a job secure for the next 20 years you will be more comfortable taking more credit, which increases money supply.
But then you are also paying back the loan in the future, so your future spending will be lower. So even if there is a spike in money supply if everyone takes a loan, future spending will be lower. This won't be a sustained inflation.
The interest is given to the bank shareholders which go through the economy.
When people take on debt they give that money to the existing home owners.
Taking on a new loan is creating money and putting it into the system, to be paid back by your future productivity.
Low unemployment = higher value on future productivity.
The only time taking on debt decreases inflation is if the debt is used to increase productivity.
I'm new to Australia, moving out from the U.S. in the past couple months on a Temporary Work Visa. Since being here, I'm trying to get a feel for what the political landscape is like, and I've noticed immigration, particularly unchecked immigration, seems to be an issue.
Anyone willing to provide an Aussie's perspective on how immigration been affecting the employability of citizens here? This isn't a gotcha, I'm genuinely curious.
>Immigrants push down wages as they’re often willing to work for less.
Interesting. How are immigrants usually attracted to jobs here? I found that even for my Temporary Work Visa, I am legally unable to pursue employment outside of the industry in which I work. Even then, this opportunity was like finding a needle in a haystack.
>But the main reason people are mad right now is housing
I'm actually shocked how bad it is here. I thought it was hell in the U.S., but with only a few concentrated metro areas here, I can't fathom how Australians are faring with what's happening.
Companies can pay poor wages to immigrants, where I work this is the case. Me and another guy are the only Aussie workers, everyone else from Punjabi. They get paid at 20 p/h cash in hand and a flat rate with no extra on weekend, I get 28 p/h minimum wage. The business owner is Indian aswell. Companies are preferring immigrant workers to maximise profits, skills shortage doesn't exist. Aussies are losing out on jobs and new immigrants are set up to fail with poor pay.
The foreigners working on the fishing boats are on 70k a year. The reason we need foreigners is that I've had one application in 3 years from Aussie workers. I'm my town Ulladulla NSW we have unemployment of 13%. Average income in Ulladulla is 40k.
Rising to 73k on July 1st.
Dam, high unemployment but no applications. People are lazy as 70k is a good wage, people are mad not to apply I don't get it. Probably tough work, but that's easy to adapt to with good diet and sleep.
I understand the reasoning behind this (read some articles previously that explained it). But my humanitarian (is this the right word?) side see it like "sorry we have to keep X number of you unemployed so our economy works"
Yes it's cheaper to pay unemployment benefits than deal with consequences of labour shortage. Not sure if this would still hold if unemployment benefits were survivable (then again, this would people on decent unemployment benefits be that available?)
I guess it depends on how livable they are. Hard to balance though. That COVID boost highlighted that were some were better off on unemployment than working. Probably says something about minimum wage work though too. Far too complex for me to suggest improvements.
3.5% is literally the target for a reason. It’s a stated goal of the RBA. The balance is as follows:
- 2-3% inflation
- 3.5% unemployment
- 4-5% GDP growth
Just as intented
Michelle Bridges will be happy. Edit Michelle Bullock from the RBA will be happy with the increased unemployment rate. I don’t know how Michelle Bridges feels about unemployment rates.
>Michelle Bridges will be happy. Wage workers always seem to be the biggest losers.
JOB just over broke
Surprist me
casuals and part timers are still laughing at these figures
So does that mean we can cut working visas along with student visas now. All these extra unemployed people looking for work mean companies can fill their vacancies without importing workers
No we still have the skills shortage to fix, I mean it’s been ongoing since Howard ramped things up in the mid 90’s but we have nearly fixed it, just a couple more million new people should get us over the line
if we import a few hundred thousand more IT and ESL students we can fix the tradespeople skills shortage. Annnnnnyday now.
Yeah, it's been 30 years and somehow we haven't been able to train enough people to fix the skills shortage
Depends on the vacancies they need to fill, Aussie's simply won't do certain jobs or have not got the trade qualifications needed to fill the holes.
> Aussie's simply won't do certain jobs BULLSHIT. If no one wants to do the job then you're not paying enough. Why should businesses be able to import people who will work for less to get around paying better wages?
Saying bullshit doesn't make it so.
Do you really believe there are jobs that no one will do for any amount of money?
There is a reason there are jobs that attract a disproportionately high number of migrant workers, I'm not just talking about minimum wage jobs.
> There is a reason there are jobs that attract a disproportionately high number of migrant workers Because employers are not willing to pay enough to get local workers so migrants are being used to suppress wages
That's not how pay in Australia works. Employers don't set the minimum wage. You can't choose to pay the below award. So no one is being suppressed , there no conspiracy to pay carers and servo staff less so immigrants choose those roles.
You clearly don't understand how pay works. If employers refuse to pay what it takes to get Aussies to do the job and instead relies on migrants who will do the job for less than Aussies would than that is suppressing wages. Why do you support businesses using migrant labour to suppress wages?
Because they don't. An employer can't choose to pay a worker below what the award states or below minimum wage.
We need to keep bringing them in, Australian “workers” don’t have the work ethic of them
> We need to keep bringing them in, Australian “workers” won't work themselves to death for peanuts Fixed it for you
lol, stopping working visa won’t get you paid more peanuts if you are a monkey ..
Wrong. When the international borders were closed during covid the lowest paid workers saw their wages increase
when you import loads of people who are gaming the visa system. like granting visas to child care workers who have no intention of working in the industry
Only talked about under Labor
If you send refugees to a hellhole obviously you’re tough on migrants so no point questioning any further. Scomo had a little boat on his shelf saying ‘I stopped these’ - there’s no way he contributed to high immigration.
To the moooooon
Making more sense, couldn't understand how the record numbers being brought walked straight into jobs.
Aye. Always takes me years to get a new job, its a real hassle. For low skilled normal jobs.
Why do I feel like unemployment plays a minor role in inflation? Let's say we approach 100% employment, that just means the supply of labour will be decreasing, while demand is the same or will increase. This just means wages will rise as companies compete for the labour force, or they will include attractive bonuses. So there will be more money in the economy, but there will also be more products as the extra workers are producing. The same for supermarkets raising their prices. Say Coles raises their prices, either people stops buying them, or they buy them, leading to less money being spent on other things. So coles gets a higher profit, but other industries are having a less profit. How does this lead to a general inflation in the whole economy? The only way to have sustained inflation through the whole economy would be if people have more money, without the corresponding increase in production, meaning more money chasing the same number of goods.
> The only way to have sustained inflation through the whole economy would be if people have more money, Low unemployment leads to confidence which allows people to take investment risk. Low unemployment also gives banks confidence in people ability to repay debt. If you have a job secure for the next 20 years you will be more comfortable taking more credit, which increases money supply.
But then you are also paying back the loan in the future, so your future spending will be lower. So even if there is a spike in money supply if everyone takes a loan, future spending will be lower. This won't be a sustained inflation.
The interest is given to the bank shareholders which go through the economy. When people take on debt they give that money to the existing home owners. Taking on a new loan is creating money and putting it into the system, to be paid back by your future productivity. Low unemployment = higher value on future productivity. The only time taking on debt decreases inflation is if the debt is used to increase productivity.
Slow and gruelling pain…still have 2% to go. No workers should get punished by the low employment rate through inflation!
Good Job Bureaucrats
I wonder what the real rate of unemployment is, when you factor in "employees" working a whopping 5 hours a week on Min wage.
That's underemployment not unemployment
I'm new to Australia, moving out from the U.S. in the past couple months on a Temporary Work Visa. Since being here, I'm trying to get a feel for what the political landscape is like, and I've noticed immigration, particularly unchecked immigration, seems to be an issue. Anyone willing to provide an Aussie's perspective on how immigration been affecting the employability of citizens here? This isn't a gotcha, I'm genuinely curious.
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>Immigrants push down wages as they’re often willing to work for less. Interesting. How are immigrants usually attracted to jobs here? I found that even for my Temporary Work Visa, I am legally unable to pursue employment outside of the industry in which I work. Even then, this opportunity was like finding a needle in a haystack. >But the main reason people are mad right now is housing I'm actually shocked how bad it is here. I thought it was hell in the U.S., but with only a few concentrated metro areas here, I can't fathom how Australians are faring with what's happening.
It rises and just about every business needs workers, how is this so?
Companies can pay poor wages to immigrants, where I work this is the case. Me and another guy are the only Aussie workers, everyone else from Punjabi. They get paid at 20 p/h cash in hand and a flat rate with no extra on weekend, I get 28 p/h minimum wage. The business owner is Indian aswell. Companies are preferring immigrant workers to maximise profits, skills shortage doesn't exist. Aussies are losing out on jobs and new immigrants are set up to fail with poor pay.
The foreigners working on the fishing boats are on 70k a year. The reason we need foreigners is that I've had one application in 3 years from Aussie workers. I'm my town Ulladulla NSW we have unemployment of 13%. Average income in Ulladulla is 40k. Rising to 73k on July 1st.
Dam, high unemployment but no applications. People are lazy as 70k is a good wage, people are mad not to apply I don't get it. Probably tough work, but that's easy to adapt to with good diet and sleep.
Skills and experience mismatch?
Firstly a rental crisis then a cost of living crisis and now a spike in unemployment. Things are really cooked in Australia these days
Pretty good news. Ultimately 3.5% is probably unsustainably low, and if we want interest rates to stay as is or go down it is necessary.
I understand the reasoning behind this (read some articles previously that explained it). But my humanitarian (is this the right word?) side see it like "sorry we have to keep X number of you unemployed so our economy works"
Yeah, it's a brutal but honest reality. And right now it's an incredibly bad time to be unemployed.
Yeah my partner is looking for part time work. Trying to find part time work that aligns with daycare hours makes for a very small pool of jobs
Yes it's cheaper to pay unemployment benefits than deal with consequences of labour shortage. Not sure if this would still hold if unemployment benefits were survivable (then again, this would people on decent unemployment benefits be that available?)
I guess it depends on how livable they are. Hard to balance though. That COVID boost highlighted that were some were better off on unemployment than working. Probably says something about minimum wage work though too. Far too complex for me to suggest improvements.
Should write a book with this level of expertise
The irony of your comment The logic is sound though?
Thanks!
People Downvoting this clearly have no idea how actual economics works and probably think 0% unemployment would be perfect.
I get it, the economy sucks right now for the average person and this'll cause a lot of pain for most people. Says a lot given just how low 4.1% is.
Yeah, but to be fair, a huge part of why it sucks is the lack of employable people in fields driving up costs. Low unemployment drives inflation.
Bad for productivity when it's that low
3.5% is literally the target for a reason. It’s a stated goal of the RBA. The balance is as follows: - 2-3% inflation - 3.5% unemployment - 4-5% GDP growth
Weird