Reserve Bank of Australia: underemployment key to next move on rates - Sensationalist Headlines

[quote=Sydney Morning Herald]Reserve Bank minutes released two weeks after this month's pre-budget monetary policy meeting show board members content to leave the cash rate at its historic low of 1.5 per cent, but concerned they may have to cut rates if more Australians aren't able to get the jobs they want. "The board continued to judge that developments in the labour and housing markets warranted careful monitoring," the minutes said, before noting that "maintaining the current accommodative stance of monetary policy would be consistent with achieving sustainable growth and the inflation target over time". ... "The share of part-time employment in Australia, which had increased from around 10 per cent in the early 1970s to over one-third at present, was relatively high by international standards, especially for younger workers," the minutes said. "One driver is that students in Australia are more likely to combine their studies with part-time jobs. [b]Data from the Household, Income and Labour Dynamics in Australia Survey suggested that the majority of part-time workers worked part-time as a matter of choice.[/b] Furthermore, some older workers indicate a preference for working part-time, possibly as part of their transition to retirement. "The survey also indicated that some part-time workers cite a lack of full-time opportunities or that their work requires part-time hours as the main reason for working part-time."[/quote] Read more at [url]http://amp.smh.com.au/business/the-economy/rba-weighs-up-high-housingrelated-debt-dim-outlook-for-wages-20170516-gw5ra5.html[/url]

There's no jobs. People take what they can get and that happens to be part time

Prettt shitty that banks are starting to increase rates way above the cash rate now

[QUOTE=LAMB SAUCE;52234463]There's no jobs. People take what they can get and that happens to be part time[/QUOTE] There are they are just fewer and require experience.

sometimes i feel like im watching a train crash in slow motion. underemployment, unemployment, stagnant wages, the worlds most obvious housing bubble. All the signs of some shitty and hard economical truths for everyone below the age of 40 is there yet it seems like people are doing fuck all to change anything to prevent a crash, just superficial spot fixes which will only help the people who are already benefitting. Feels like myself and people my age are going to be left holding the basket at the end of the day, to no-ones benefit but the people before us.

I feel we are heading for a future where we'll see a resurgence of artisan craftsmen who work locally, and more protectionist systems being put into place on the state/county level to protect said artisans and their works, with works outside of the regional area being considered luxury imports and such. Oh and we'll see a surge in family run businesses which are backed up locally by trading organizations/guilds. We going 1500's all over again, but this time without the need for black death to cause a need to increase wages!

[QUOTE=JoeSkylynx;52234693]I feel we are heading for a future where we'll see a resurgence of artisan craftsmen who work locally, and more protectionist systems being put into place on the state/county level to protect said artisans and their works, with works outside of the regional area being considered luxury imports and such. Oh and we'll see a surge in family run businesses which are backed up locally by trading organizations/guilds. We going 1500's all over again, but this time without the need for black death to cause a need to increase wages![/QUOTE] What

[QUOTE=Badballer;52234486]Prettt shitty that banks are starting to increase rates way above the cash rate now[/QUOTE] The bank rates are dictated by economic risk, the cash rate is dictated by the reserve bank and is influenced by politics. In uncertain economic times the banks don't want to risk being left with the debt if the market goes under. The reserve bank is more interested in scoring with the voters for cheap political capital. [editline]16th May 2017[/editline] Low interest rates are supposed to encourage economic growth and create jobs but all they do now is drive up house prices creating massive nation debt, while businesses aren't interested in taking out these cheap loans and growing because they feel we're facing a very large downturn.

[QUOTE=Sims_doc;52234543]There are they are just fewer and require experience.[/QUOTE] I thought it was pretty obvious but here's a brief explanation, If there are a lot of jobs, more qualified people will be employed. If there is little supply of jobs, they will only select the most experienced and qualified person or just nepotism. Thus giving you the shit like "Junior X Required, 5 years experience minimum, graduate degree required".

[QUOTE=LAMB SAUCE;52234882]I thought it was pretty obvious but here's a brief explanation, If there are a lot of jobs, more qualified people will be employed. If there is little supply of jobs, they will only select the most experienced and qualified person or just nepotism. Thus giving you the shit like "Junior X Required, 5 years experience minimum, graduate degree required".[/QUOTE] Then you have the people who switch career, apply for an entry level position and then expect to be making as much as they were before in a senior position in another industry and overall waste everyone's time.

[QUOTE=LAMB SAUCE;52234882]I thought it was pretty obvious but here's a brief explanation, If there are a lot of jobs, more qualified people will be employed. If there is little supply of jobs, they will only select the most experienced and qualified person or just nepotism. Thus giving you the shit like "Junior X Required, 5 years experience minimum, graduate degree required".[/QUOTE] Your reasoning is sound, but it doesn't apply to every industry. Companies will literally beg for software developers, yet for Juniors expect X years experience (already mid level if you're at 3+ years) plus Bachelor's instead of a normal diploma/degree.

[QUOTE=NGC;52236250]Your reasoning is sound, but it doesn't apply to every industry. Companies will literally beg for software developers, yet for Juniors expect X years experience (already mid level if you're at 3+ years) plus Bachelor's instead of a normal diploma/degree.[/QUOTE] I'm sorry, but you listed one industry example, I'm not talking about one industry. I'm talking about the workforce at a whole, as per the article. There is a serious over supply in this country in the large majority of the workforce. [editline]16th May 2017[/editline] [QUOTE=helifreak;52234900]Then you have the people who switch career, apply for an entry level position and then expect to be making as much as they were before in a senior position in another industry and overall waste everyone's time.[/QUOTE] Only an idiot expects that, most people aren't that dumb.

[QUOTE=LAMB SAUCE;52234882]I thought it was pretty obvious but here's a brief explanation, If there are a lot of jobs, more qualified people will be employed. If there is little supply of jobs, they will only select the most experienced and qualified person or just nepotism. Thus giving you the shit like "Junior X Required, 5 years experience minimum, graduate degree required".[/QUOTE] You say that, but during my time working in Australia I experienced a ton of employers who were frustrated that they couldn't find people who had that mythical 5 years experience for entry level jobs, that they refused to take any of the applicants at all. It's not all supply and demand, it's also an extremely unrealistic expectation on the part of employers.

A bit of background from somebody who is living in this situation: I'm Australian and have been out of work for the past two years. But not for lack of trying. I've had three jobs in the last half-dozen years. Want to know what the common themes were? [B]1) No fixed shifts. For [I]anybody[/I].[/B] Everybody from new employees to managerial staff work "casual" meaning that every week, our hours are dictated and liable to change. My previous job saw myself and other employees being given as little as 5-8 hours a week at most. In one of my jobs (delivery for a pizza joint that later went under entirely) this measly amount of time literally did not cover the cost of the [I]fuel I was using to do the job itself.[/I] [B]2) Experienced workers being axed or demoted so that lower paid "juniors" can be hired in their place.[/B] In my second job, things were going okay until it came to my attention that my manager at the time was paying me a junior rate. When I brought this matter up with said manager, he raised my income... And decimated my hours. He was able to do this because of the aforementioned "everybody works casual" thing so my overall income dropped to such a degree that I was actively [I]losing[/I] money on fuel by continuing to do the job. To make matters worse, my manager then put a sign on the store window saying "seeking drivers". When I confronted him about this (as I had actively been asking for more hours prior) he said, to my face, that he wanted to hire juniors so he could pay them less. I didn't bother coming in to work after that. It gets worse, though. My third job manager (who I remain friends with to this day) once confided in me his frustration that the head office where we worked was pushing him to fire his older, more experienced staff and hire juniors. Guess what happened to me, and later 8 of the 10 people I worked alongside shortly thereafter? [B]3) Welfare is usually better paying than entry level jobs, and not even [I]that[/I] covers the cost of living.[/B] In order to get by since losing my last job, I've been forced to turn to what is called the "newstart" allowance. A fortnightly payment to help out-of-work people stay afloat while they seek new jobs. Sounds simple enough, right? A temporary government sum to help people keep their lives together when they're between jobs. Its only ever supposed to last a year or so at most... Here's the kicker, though: The newstart allowance pays me [I]more[/I] than any of my previous jobs did. Not because the wage rates were particularly low, but rather because the employers here don't want to pay adult rates to anybody if they can avoid it and effectively bully juniors out of their jobs the moment they stop being juniors. The only reason I'm online and with a roof over my head is because I live in shared accommodation. The newstart allowance literally doesn't even cover my house's rent, and I live in a low-rent area. In the two years since losing my last job, I must have applied for well over 1000 jobs both online and in person. I've been diagnosed with two neurological disorders, moved house, and been through no less than four separate recruitment agencies. For the past year and a half I've had exactly one employer reply to my applications. Obviously, it didn't work out. Worse still is that I should, technically, be on a disabled rate from centerlink, but because so many people are in similar or identical situations to me, the welfare offices are overwhelmed and understaffed. And are responding by making welfare harder and harder to get. Since I applied for the disability claim almost a year ago to date, the rules around it have changed [I]twice[/I]. So yeah... If that doesn't sound like a disaster waiting to happen, I don't know what does.

[QUOTE=1239the;52239155]You say that, but during my time working in Australia I experienced a ton of employers who were frustrated that they couldn't find people who had that mythical 5 years experience for entry level jobs, that they refused to take any of the applicants at all. It's not all supply and demand, it's also an extremely unrealistic expectation on the part of employers.[/QUOTE] There's something to be said for the expenses of training a newbie and then trusting them with no prior history but that's no excuse to Stonewall an able working force

[QUOTE=Ona;52239836]-absolutely terrible- So yeah... If that doesn't sound like a disaster waiting to happen, I don't know what does.[/QUOTE]sounds exactly like the situation here, down to the welfare agency incompetence. it's not a disaster waiting to happen, it's a disaster already ongoing

[QUOTE=JoeSkylynx;52234693]I feel we are heading for a future where we'll see a resurgence of artisan craftsmen who work locally, and more protectionist systems being put into place on the state/county level to protect said artisans and their works, with works outside of the regional area being considered luxury imports and such. Oh and we'll see a surge in family run businesses which are backed up locally by trading organizations/guilds. We going 1500's all over again, but this time without the need for black death to cause a need to increase wages![/QUOTE] oh me oh my its thee duke of tamworth. milord please spareth a durry for the common folk who toil away on the old coal fields for 2 shillings a day.