The Financial Times (on their Fast FT service, gated) have a report re HSBC’s Paul Bloxham (chief economist for Australia and New Zealand) comments on the Aussie labour market.
In brief:
- Mining sector only accounts for 2.5% of Australian workforce
- As the rebalancing continues (from mining to non-mining-led growth) and broadens, job creation should accelerate
He does note, though:
- but falling commodity prices also weigh on national income as the value of exports drops, and a high Australian dollar has discouraged job creation at home by employers who can place their operations elsewhere
Says
- unemployment will probably peak before the end of 2014
- To be alleviated by jobs growth in other sectors over the course of 2015 (a year earlier than the RBA has forecast)
This is conditional, though, notes Bloxham…
- Only if the AUD continues trading near the seven month lows seen overnight
- The fall gives “many sectors of the economy the breathing space they need to grow”
