RBA has Time as Wages Steady
Though there is mounting evidence that the demand for workers is easing, containment of wage pressures has been seen. This is happening even as economists have warned that the nation’s poor productivity performance is responsible for pushing unit labor costs up and adding to inflation pressure.
There has been a minor 0.1 of a percentage point increase from the previous quarter as the official labor price index went up by 0.9 per cent in the June quarter. However, the annual growth rate eased to 3.8 percent from 3.9 per cent.
These results have been due to the declining wage pressures in the private sector. In this sector, the quarterly pace of pay gains fell to 0.7 percent last quarter from 1.2 per cent in the September 2010 quarter.
The skilled job vacancies, according to a Department of Education, Employment, and Workplace Relations report, fell 1.7 per cent last month which is still 5.2 per cent higher than a year earlier. But this still does not come close to the annual growth rate of around 20 per cent achieved earlier this year.
The causes of this result point to the weakening demand for managers, professionals, and laborers. Machinery operators, on the other hand, remain in demand.
What are hurting employment include subdued household spending, the strong dollar and the mounting concerns about the economic outlook.
About 30 employees would be laid off from Silex Solar as announced on Wednesday. OneSteel, Qantas, and Westpac are also among the employers that would be axing employees.
A week after the Australian Bureau of Statistics figures indicated that employment growth stalled last month, the job losses came. The unemployment rate went up to 5.1 per cent for the first time in almost a year.
Source: AFR.COM
