Australia needs a more dynamic labour market when we consider the economic outlook. Spending by households is flat, most job growth is confined to part – time positions and people in general are anxious and uncertain about the economic future. The Australian nation is vulnerable to external shocks at a time of weak global growth and sluggish trade. Although the June 2016 quarter growth figure is encouraging it is heavily dependent on public sector spending. State infrastructure projects may leave lasting legacies but much government spending, commonwealth and state, is recurrent and financed with the savings of foreigners. Australia needs renewed economic reform if it is to keep dodging recession.
In recent times, Australia has ridden an economic boom supported by China and it’s hunger for Australian resources. The government in Canberra has been receiving royalties and failed to predict the downturn of the Australian mining industry which is now currently the case. The money from the iron ore and mineral royalties should have been used to create new industries and employment opportunities. A decline in mining investment and mining related employment has contributed to a sharp slowdown in Western Australia’s population growth. Figures from the Australian Bureau of Statistics highlight challenges facing the State of Western Australia with the total workers in mining slipping below 100, 000 in the last three months. At the height of the economic boom in mid – 2012 there were more than 120,000 Western Australian’s employed in the mining sector. Western Australia’s population is also growing at it’s slowest rate in 13 years with thousands of the states residents leaving to work in other parts of Australia.
The politics are not easy , especially with the opposition government’s penchant for scare campaigns directed at the public. For the Australian small business community the next 6 – 12 month period will decide the fate of a lot of business operators in communities around Australia. For business in the surf industry in this country , it’s time to look at restructure of current business models and being able to adapt to a future tighter economy.
The question on every bodies mind is, can the current government hold it’s nerve and rebuild the economy, if it cannot do so, there are going to be some very dark days ahead as we are now at the crossroads. The countries deficit is growing rapidly out of control and this is going to be a huge burden for future generations of young Australians.
What Australia requires is strong leadership from the Turnbull Government. Otherwise Australia will fall into a recession. I remember operating a small business in the early 1990’s during the Paul Keating area of The Labor Party and it was not a pleasant time to be living in Australia with massive unemployment and industry downturns and industrial strike action, clashing with the Keating government.
So Where To Now … Australia …