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THE LATEST FROM THE KOUK

'Jobs and growth'? Both are stalling actually

Tue, 24 May 2016

This article first appeared on the Yahoo7 site at this address: https://au.finance.yahoo.com/news/-job-and-growth---both-are-stalling-actually-223940793.html 

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'Jobs and growth'? Both are stalling actually

Record low wages growth and job creation has stalled.

These are the facts on the labour market revealed this week as the election campaign rolls along and economic policy underpins the campaigns of the major parties. For the Coalition, the campaign slogan ‘jobs and growth’ is running a bit thin with this news.

The rate of employment growth has stalled with only 27,500 additional jobs over the last five months.

Over this time, the working age population has increased by 136,800 meaning that 80 per cent of new entrants to the labour market have not found work. In a strong labour market, the take up of new entrants to the labour market is usually 65 to 70 per cent.

Making the news even more problematic is the decline in full-time employment, which has dropped 31,600 in the last five months. This means that the number of hours worked within the labour market is falling, suggesting a softer tone to the rate of economic growth and another constraint on consumer spending as part-time workers take home less pay than full-time workers.

Better schools will benefit the whole economy. Why can't the Coalition see that?

Mon, 23 May 2016

Thjis article first appeared on The Guardian website at this link: http://www.theguardian.com/australia-news/commentisfree/2016/may/20/better-schools-will-benefit-the-whole-economy-why-cant-the-coalition-see-that 

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Better schools will benefit the whole economy. Why can't the Coalition see that?

Education policy is a hot button issue in the election campaign with the Coalition paring back funding for schools, universities and trades while Labor is advocating a multi-billion dollar boost for education across all segments to promote equality, raise productivity and grow the economy.

The Coalition’s lack of commitment to education is shown by its policy to give just $1.2bn to needs-based school funding, well short of the $4.5bn commitment from Labor under the Gonski reforms to lift education standards. It is a similar issue with the Coalition’s approach to university funding where higher fees will discourage students from gaining a higher education.

It is an odd debate given that the relationship between educational attainment and growth and income is a given. The more skilled and educated a workforce, the better off is the economy and the population.