A strange note from the Australian job market. “The jobless rate has fallen to a fresh 33-year low of 4.2 per cent, stoking fears of an interest rate rise next month,” reports the Australian. “In a sign of an economy working at full tilt, the number of jobs increased by 13,000 in September. A fall in full time employment of 17,200 was offset by a surge in part time jobs of 30,100.”
It’s not strange that the economy is running at full tilt. What is strange is that full-time employment fell while part time employment soared. Hmm. An anomaly? Or a structural shift in the job market where you have greater flexibility to move and improve your salary, but less lifetime employment security?
That’s globalisation for your, more choice but less certainty. It’s hitting Western workforces particularly hard. For years we’ve been used to high wages and little competition. Now it’s the opposite: low wages and fierce competition.
Our prediction: the forced flexibility is inevitable. You can’t lock in high wages these days by protecting certain markets. If you try, whole sectors of your economy will simply vanish offshore where labour is cheaper. Employees will have more flexibility…but slower real growth in wages…and higher growth in prescription medications for anxiety and depression.
Dan Denning
The Daily Reckoning Australia
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About the Author
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). He began his financial publishing career in 1997 and has covered financial markets form Baltimore, Paris, London and, beginning in 2005 Melbourne. He’s the editor of The Daily Reckoning Australia and the Publisher of Port Phillip Publishing.
Comment by Market Socialist Dude on 12 October 2007:
Anxiety and depression will no doubt increase but for the first time in history all of the workers of the world will actually have something in common to unite against; global capital.
Each system lays the groundwork for its eventual fall.
Comment by Philip Barton on 12 October 2007:
Credit
When markets rise it’s no surprise
your government takes the credit.
It’s a cleverness and vision thing,
bold leadership that led it.
But when markets fall and suffering starts
It’s business thugs who bled it.
Those greedy corporate crooks are jailed
and your government takes the credit.
Comment by David Hannaford on 13 October 2007:
The jobless rate fell because long-term unemployed are being harrassed, case-managed and starved off the dole (and off the jobless list). The credit crunch and rising costs mean that many are accepting any job at any wage to pay the rent.
Comment by Alan on 13 October 2007:
In a free market economy-yes..But we are seeing the rise of protectionist policies in the States and this will percolate around the globe along with cries of "China should play by the rules".A democrat president,labour government in Australia.Are we really ready to compete freely with a work force that sleeps in dorms at the local factory?I don't think so.
Comment by MMLJ of Sydney on 15 October 2007:
Comrade Market Socialist Dude:
A libertarian, gold bug etc etc forum is a very odd place to find what reads as a finely conventional socialist.
You read Daily Reckoning to fine tune your portfolio pending the day of the Revolution ?
Or are we just looking for names of class enemies ?
Just curious.
Comment by Market Socialist Dude on 15 October 2007:
Dear MMLJ,
Let me point out that I am not a "finely conventional socialist". I am a market socialist, which means I believe in a decentralised form of socialism, which operates on the basis of the law of supply and demand.
I thought I would regularly comment on this site so I could engage in real debate instead of seeing people furiously agreeing with each other.