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Domestic response needed to quell job losses

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Australian Mines and Metals Association (AREEA), the national employers’ organisation for the resources sector, says that yesterday’s rising jobless statistics confirms that domestic policy responses must be urgently reassessed to take cost pressures off business.

As AREEA outlined earlier this week, the resources sector alone has reduced employee numbers by over 10,000 in recent months. Further to this, over 55 per cent of the industry has already locked into further dramatic reductions in 2009. Another 30 per cent of the industry is still contemplating whether job cuts will be necessary.

‘Most analysts agree that Australia’s jobless rate will rise faster and steeper than official government forecasts.’

‘Reductions in payroll and company taxes, moderating new industrial relations laws, deferring introduction of the emissions trading scheme, further reductions in interest rates all need to occur in unison.’

‘Also fast tracking infrastructure projects has even greater urgency to ensure the recent stimulus packages maximise the capacity to ameliorate job losses and contribute to nation building.’

‘Simply alluding to external global factors and not addressing much needed domestic policy responses, will result in many employers hitting the wall (as some have already) and longer unemployment queues.’

‘Unless these issues are collectively tackled, unemployment will rise way above the 7 per cent projected for mid 2010.’


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