Record low unemployment because...

[wayneL]

<tongue in cheek>...everybody is trading for a living these days.</tongue in cheek>

<flippant>Can we be an economy that buys and sells houses and shares to each other (plus digging up a few shovelfuls of dirt to flog off) indefinitely?</flippant>

 

[smoothsatin]

Not quite that simple, the participation rate continues to increase, not decrease....also as i am sure you are aware the definition of unemployment has continued to get looser over time, so 4.2% headline rate nowadays is nowhere near as close to real full employment as 4.2% headline rate was 40 years ago...

 

[Sean K]

...everybody is trading for a living these days.

Can we be an economy that buys and sells houses and shares to each other (plus digging up a few shovelfuls of dirt to flog off) indefinitely?

Probably only until the industrialisation of Chindia is complete, and then we'll all go back to being taxi drivers again until Africa industrialises.
Record low unemployment is probably more complex than just being China's mine, and probably more to do with an international economic sweet spot.

Is there a new paradigm in international economic markets where knowledge has allowed us to craft systems that will prevent cycles? I doubt it. There will be an economic cycle surely. The next bust is just a sneeze away perhaps. Then, it'll be back to the cab. Or, the Army in my case.

 

[wayneL]

Probably only until the industrialisation of Chindia is complete, and then we'll all go back to being taxi drivers again until Africa industrialises.
Record low unemployment is probably more complex than just being China's mine, and probably more to do with an international economic sweet spot.

Is there a new paradigm in international economic markets where knowledge has allowed us to craft systems that will prevent cycles? I doubt it. There will be an economic cycle surely. The next bust is just a sneeze away perhaps. Then, it'll be back to the cab. Or, the Army in my case.

'cept we'll all have to know Mandarin and Urdu.

I'm thinking keep enough dosh to buy a 2nd hand limo, and with the above language skills, should be able scratch by in at least a little bit of style until the next boom.

Just hope that boom isn't caused by a critical mass of U238 clapping together.

 

[Sean K]

'cept we'll all have to know Mandarin and Urdu.

I'm thinking keep enough dosh to buy a 2nd hand limo, and with the above language skills, should be able scratch by in at least a little bit of style until the next boom.

Just hope that boom isn't caused by a critical mass of U238 clapping together.

And hopefully Gero still exists after all the miners have left after they've dug everything up, so you have some people to drive around in the limo.

 

[Spaghetti]

I see a problem where a truck driver in a mine earns $170,000 pa yet a bus driver ferrying our kids around gets $14 an hour.


probably bite us on the bum one day.

 

[reece55]

I see a problem where a truck driver in a mine earns $170,000 pa yet a bus driver ferrying our kids around gets $14 an hour.


probably bite us on the bum one day.

Spag
I think that definitely is the answer here - imbalances last only so long - I won't predict the end, but I will say that eventually it will cease......

However, with the casualisation of the workforce, you can't really trust our unemployment numbers anyway. I mean, the stats mean that you only have to be employed to count as an employed member of our workforce, regardless of whether you are getting the hours and/or the conditions you require. Plus, if you are not actively looking for work, you aren't counted....... What a crock.....

Cheers

 

[Spaghetti]

It preys on my mind quite a bit, the imbalance.

Costello is very proud of his record yet he never denies that keeping wages down reduces inflation. Yet wages for many have not been kept down. Just for some, well many. The wages a government can control are the ones outside market forces. Usually essential services. So we have had pressure applied only to keep down lower paid jobs, not all wages. Little wonder there is low unemployment.

I hear people worry that if they vote labor, unions will make a comeback, but surely if people are underpaid it will be what drives an union comeback?

My belief is that people have been living the high life off low interest rates and home equity, rather than wages.

I think it all will bite us on the bum one day

 

[Rafa]

I got no idea where to post this, probably shoudl be in a labor liberal thead, or most probably in the one on how does the IR laws effect you, but it also could be on the one about Rudd on the stockmarket...

so mods, feel free to move if deemed appropriate...
But...

Did anyone see the 7:30 report tonight on the AWA employees actually speaking about work conditions and safety issues at the BHP mine in WA???

Finally, good to hear from the real people on AWA rather than that usual beat up, take off AWA and the boom will end brigade

Funny how a unionised workforce has had not negative effects on the resource boom in queensland.

 

[arminius]

something is seriously wrong with a system that sees a stop go traffic controller being paid $50 bucks an hour. ever wonder why new roads cost taxpayers so much.
good luck to them, but somethings gotta give.

 

[Sprinter79]

Has anyone got a stat on 'under employment'? I can't be arsed looking hahah

That would be a much better, albeit less sensational, indicator than general unemployment.

 

[--B--]

Not quite that simple, the participation rate continues to increase, not decrease....also as i am sure you are aware the definition of unemployment has continued to get looser over time, so 4.2% headline rate nowadays is nowhere near as close to real full employment as 4.2% headline rate was 40 years ago...

yes 40 years ago is correct, however for the past 4 decades unemployment has been measured using the guidelines set out by the International Labour Organisation (ILO).

The myth that the current govt has fiddled with the measure of unemployment is exactly that - a myth.

 

[moXJO]

something is seriously wrong with a system that sees a stop go traffic controller being paid $50 bucks an hour. ever wonder why new roads cost taxpayers so much.
good luck to them, but somethings gotta give.

My brother was talking to me about this just the other day. Seems you have to travel a bit and looks mind numbingly boring. Apparently people run them over all the time as well.Maybe to see if money falls out of them? Is that the real rate or the someone at the pub told me rate? Is it consistent 6 days a week 8 hour days work at $50 per hour or every now and then?

 

[Santob]

Good luck speaking Urdu*, I'll stick to Mandarin and Hindi.

*albeit Urdu and Hindi are fairly similar.

 

[Santob]

My brother was talking to me about this just the other day. Seems you have to travel a bit and looks mind numbingly boring. Apparently people run them over all the time as well.Maybe to see if money falls out of them? Is that the real rate or the someone at the pub told me rate? Is it consistent 6 days a week 8 hour days work at $50 per hour or every now and then?

They don't get PAID at $50 an hour - they are BILLED by the firm thats paying for them as $50 per hour - thats the standard basic rate applied when costing in Non-specialist Labour on construction projects.

 

[arminius]

my niece's partner. day work, mon/fri is 20-30 or something. nite work and w/ends is at least $50/hr. i think more. is currently out bush for a month on a job. a month away from home and 2 month old baby. will tell you what the month earned him if you like.
he is 6 hrs drive away. im wondering why cant they hire some casuals down there, for half the price. its all cost that comes back.

 

[Mofra]

<flippant>Can we be an economy that buys and sells houses and shares to each other (plus digging up a few shovelfuls of dirt to flog off) indefinitely?</flippant>

WayneL, given the 40% (estimated) overseas ownership of domestic bourse, we can quite comfortably live selling shares to foreign interests as well as to each other.

Remember, bubbles never burst....

 

[wayneL]

Remember, bubbles never burst....

Oh yeah! I forgot.

 

[moXJO]

They don't get PAID at $50 an hour - they are BILLED by the firm thats paying for them as $50 per hour - thats the standard basic rate applied when costing in Non-specialist Labour on construction projects.

No its paid $50 an hour was talking to a fellow that was swiveling the stick down here.They traveled 6 hours to work in a place where unemployment is high and you could have hired an army of lolly pop men for $12 bucks and a pie.

 

[tech/a]

Ive been watching the "bursting bubble" discussion since inception of this site.

There seems to be an obsession with "why,when,how".

Yet few seem to be taking full advantage of 2 yrs of fantastic opportunity and 8 yrs (if youve been a member of other sites Reefcap).
Property,business and trading.

Simply become involved and set risk stratagies and enjoy!!