The last two days have been horrendous for some 5,000 workers:
Thousands of Australians will be wiped from companies’ payrolls as the economic downturn continues to bite and expectations of corporate growth wane.
In the past two days alone, three announcements of large-scale cut-backs have left more than 5000 people facing the prospect of unemployment – and prompted a senior government figure to say that no Australian job is safe.
Those job cuts have hit three distinct sectors – property, manufacturing and mining.
Then there’s the automatic flow -on effect:
Federal Industry Minister Kim Carr said he was particularly worried about the flow-on effect from the Pacific Brands decisions, with thousands of people working to supply the company with fabric, equipment and other products now also likely to lose their jobs.
“I wouldn’t say anyone’s job is safe,” Senator Carr told radio 3AW.
“These are difficult times. We are facing acute stresses right throughout the Western world as a direct result of the global recession.”
Senator Carr said about 40,000 people were employed across Australia in the textile, clothing and footwear industries, with about 3% of them to lose their jobs in the Pacific Brands clean-out.
I can’t help but return to previous comments I made back in December and since then Japan, our largest trading partner’s economy has virtually crumbled.
Posted on December 31, 2008
There’s a decidedly chilling feature about what’s in store in 2009 and frankly I tend to agree with this unemployment prediction. Whether or not government actions will help soften the blow is a matter of speculation simply because we now have on average higher housing prices and personal debt levels as well as lower personal savings rates than the US and UK .
THE global financial crisis could force unemployment towards the one million mark next financial year, despite further expected dramatic interest rate cuts by the Reserve Bank.
In a gloomy new year outlook, economists are predicting unemployment could rise through 2009 from its current 4.4 per cent level towards 8 per cent, costing a further 400,000 people their jobs and pushing the number of unemployed to more than 900,000 – the worst level in a decade.
“Unemployment of 8 per cent in 2010 is on the cards. It’s quite likely,” said Melbourne Business School professor Mark Crosby.
But a massive economic stimulus delivered by interest rate cuts, lower petrol prices and extra government payments could mean the nation will avoid the worst of the downturn that has swept economic giants such as the US, Britain and Japan and forced a significant slowing of growth in China
Over to you
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