There's also an underclass developing that want work 5 days a week but due to the businesses not doing well are getting 1 to 2 days a fortnight. These are people that want to work and often have relevant qualifications but the offshoring and 457 visas along with international dumping are putting the companies in positions where they can't hire.Australia's low wage growth confirmed by the ABS again today - smashing the budget forecasts according to Business Insider:"Underemployment". Let's unpack that a bit more. Dare I say that a reason for this is parents desiring to spend more time with their kids (i.e. Tag-team parenting and work duties which is now very common as workplaces try to be more flexible). And with a service-based economy this would be more prevalent as well?
“This low wages growth reflects, in part, ongoing spare capacity in the labour market,” said Bruce Hockman, chief economist at the ABS. “Underemployment, in particular, is an indicator of labour market spare capacity and a key contributor to ongoing low wages growth.”
The ABS said that private-sector wages, employing the vast majority of the Australian workers, grew by just 1.78% over the year, the slowest pace on record, undershooting the 1.79% pace reported in the year to march this year.
Over the quarter, private wages grew by 0.4%, the weakest result since the September quarter of 2009. That’s GFC territory.
It's hard to imagine that our economy is doing so well when there's a chronic lack of demand for labour?
Another factor could be the "keep your job but cut back the hours" request from the boss...
EG Murray-Goulburn's closure of the Rochester plant due to the 'unavailability of milk supply' (which appears to have been caused by their price to farmers dropping below the cost of production and MG wanting the difference they had already paid repaid) has already caused house prices to drop and a couple of businesses to close. Those moving to other areas are finding it hard to get any jobs in their new locations and what are available are casual - meaning no holiday pay, sick leave, unable to get loans to purchase property, hard to get rental property due to the inconsistent income etc.
I wish it was a choice to cut back but a lot of people can't afford it and are living week-to-week