By Alex Tarrant
Government is aware of competitive threats from the Australian jobs market, although a strong Australian economy helps New Zealand, Prime Minister John Key said after the Australian government forecast the creation of 500,000 jobs in two years.
Australian Treasurer Wayne Swan said government's budget would help create half a million jobs over the next two years to deal with a skills shortage in sectors such as mining, and to replace retiring baby boomers.
Job seekers in Australia would be encouraged to move into areas of low employment such as infrastructure, transport and government services sectors.
Swan said he would like the jobs to be filled by Australians and not through migration policies, although there could be a short-term migration boost to deal with shortages in mining jobs. New Zealand has extremely flexible labour laws with Australia, with citizens from both countries allowed to work in the other without a work visa. See Gareth Vaughan's article on how an average 139 New Zealand citizens a day left permanently to live in Australia in February.
Also, see Amanda Morrall's piece on the widening wage gap with Australia.
The news of Australia ramping jobs growth also comes as New Zealand faces a trade skills shortage as it rebuilds Christchurch, increased house building demand in Auckand and a pick-up in the repair of leaky buildings.
Key said the government was always conscious of competitive threats with Australia, but was also conscious of the fact that a strong Australian economy helped New Zealand.
"So it’s a double-edged sword. I actually think if you look at the steps we have taken as a government, they’ve been positive," Key told media at his post-cabinet press conference in Wellington.
"We have a much lower top personal [income tax] rate than Australia, we’re starting to invest heavily in our infrastructure, and I think actually as the AFR [Australian Financial Review] pointed out in one of its articles a couple of weeks ago, if you strip mining out from Australia - it’s very much a two speed economy over there," Key said.
"I think in many respects New Zealand’s doing quite well. That doesn’t mean there’s not a lot more that we need to do,” he said.
Government was doing a lot in the area of job creation strategies.
"We’re going to see the unemployment data this week. I don’t know what it’ll be like, but the government’s been doing what it can practically to stimulate the economy and to create jobs," Key said.
"From what I see in terms of the unemployment data at least, that unemployment data is tracking down. And in the leading area, which is Auckland, those on an unemployment benefit are considerably lower today than they were for instance this time last year," he said.
13 Comments
The outflow to aus is masking the true unemployment numbers here. Expect the shortage of skilled trades workers to be reflected in the approaching explosion of building costs thanks to the quake and the rotten house rebuilds...Fletchers will be rolling in profits...families will be saying "NO" to building new homes....the exodus will continue...the shortage grow worse...the charge out rate for labour will rise .....anyone see a problem here?
We are entering an era of the 'container home' and the 'container suburbs'...buy your 40 foot steel boxes and get with the 'leggo' approach to DIY......bet the councils will spit the dummy as this develops.
Here you are...have a gork
even better...how to do it...
http://www.containerhomes.net/installation_in_a_shipping_%20container_home.html
Maybe we won't need those containers, Wolly! As the emmigration exodus, that you describe, ramps up, those 'left behind' ( ie: and unemployment falls ~ there's less people in NZ, divided by, less without a job!) will be able to live in the previous 'mansions' of those that have fled, at a purchase price similar to that container that will no longer be needed....
I have crunched the number on containers before Wolly, and unless you got to multiple stories then it is cheaper to do it from scratch in timber.
I know our housing stock is pretty awful but living in a container would be even more depressing.
Heck I can see you in the pink polka dot one though:)
There is a heck of a lot of BS in this speil from Key
"I think in many respects New Zealand’s doing quite well. " REALLY John? Bugger all GDP growth for the past 3 years, limited reduction in unemployment, soaring debt levels. What a clown. John you must have really low expectations and standards.
Pretty disingenious to turn around the good news Aus story and then argue Aus's strength is good for us. But then in the same speech say actually Aus isn't so strong anyway (2 speed economy)
And isn't this a totally contradictory statement:
"We’re going to see the unemployment data this week. I don’t know what it’ll be like, but the government’s been doing what it can practically to stimulate the economy and to create jobs," Key said.
"From what I see in terms of the unemployment data at least, that unemployment data is tracking down. And in the leading area, which is Auckland, those on an unemployment benefit are considerably lower today than they were for instance this time last year," he said.
So John have you or haven't you seen the unemployment data???
Lest we forget , Aussie Finance Minister Wayne Swan was instrumental in dreamin' up the Super Mining Profits Tax , which ultimately led to PM Rudd being back-stabbed and ousted by Julia Gillard .
....... I'd take anything that Swan says with a grain of salt ........ More so if he predicts that the government will create jobs ........ Just as Michael Cullen ( NZ ) & Timothy Geithner ( USA ) before him pledged their government's to create jobs , expect the opposite .
Two questions PM Key.
What do you mean in saying we invest heavily in infrastructure ?
....and as far as skilful NZemployment concern, where are these jobs coming from ?
Why are our parliamentarians not grilled by the media with more detailed and profound questions ?
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