Thursday, June 04, 2015

ACTU: Weak economy delivers little hope for unemployed

3 June 2015

Australia’s slowing economic growth is well below the level needed to tackle unemployment and see new jobs created.

Today’s national accounts figures show economic growth of just 2.3 per cent in the year to March, which is below average and below the level needed to start pushing down unemployment.

Australian households are also feeling the pinch and have less money to spend, with the key measure of household income falling by 0.2 per cent in the year to March.

Business confidence in the economy is also low with spending on capital goods falling, which doesn’t bode well for reducing unemployment.

Today’s figures all highlight the weakness in Australia’s economy and the need for the government to take action to stimulate the economy and create jobs.

Unemployment has now been at or above 6 per cent for almost one year – since a month after the Abbott Government came into office.

The Abbott Government needs to deliver a genuine plan for jobs, not just tax cuts to small business which will do little to create employment, as the budget itself notes with unemployment forecast to rise.

The National Accounts today show:

  •          The Australian economy (real GDP) grew by just 2.3% in the year to March 2015
  •          Real domestic income fell by 0.2% over the year to March 2015
  •          The terms of trade continue to plummet, falling by 11.4% over the year.
  •          Business spending on capital goods (gross fixed capital formation) fell 3.4% in the year to March

Quotes attributable to ACTU Secretary Dave Oliver:

“Unemployment has been at or above 6 per cent for almost twelve months, yet today’s economic growth figures show there is little prospect of new jobs being created.

“The national accounts show our economy is weak which is putting Australians out of work.

“Australian households are feeling the pinch – we need a plan from the government to stimulate the economy and turn things around.

“The government needs to change direction and support wages growth and investment in jobs and skills in order to boost the economy.”

No comments: