Is there a Jobs Squeeze Budget ahead?

Catholic Welfare Australia is alarmed that next week’s Budget is shaping up to be big on protection and defence but what will happen to job creation and programs for getting unemployed people into the workforce?  Treasurer Costello’s seventh budget needs to be socially responsible and not heavy on political expediency.

Unemployment remains one of the greatest concerns in the minds of Australians.  Despite this, the Commonwealth Government appears unconcerned with unemployment stuck above six per cent.  Today's Australian Bureau of Statistics Labour Force data reveals there are around 630,000 job seekers competing for only 86,000 job vacancies.  However, these official figures are conservative and underestimate the problem.  The challenge faced by these job seekers and by the 164,000 who are long-term unemployed in vying for limited vacancies is great even before considering the additional 500,000 who have withdrawn from the labour market but who want work and the 200,000 under-employed wanting more work.

“That such a significant segment of the community faces a precarious future despite a decade of dazzling economic performance is an indictment on this country’s economic management,” said Director of Catholic Welfare Australia, Mr Toby O’Connor.  “Those excluded from the labour market or trapped at its margins have not shared in the prosperity and can expect things to get worse should the economy slow.  From all accounts, on Budget night many Australians will be asking:  But where are the jobs?”

“The least our community should expect on Budget night is a proper national employment strategy including measures to improve access to employment services as well as direct job creation,” said Mr O’Connor.  “Investment in sustainable public infrastructure and regional development would lift the performance of labour markets experiencing chronically high levels of unemployment and low employer demand.”

Mr O’Connor concluded, “This is the time in the economic cycle when the Federal Government should be investing in jobs and building a skilled and efficient workforce to maintain, and indeed better, the nation’s current economic performance.  It would be a great shame if recent Budget news items were proven correct and the unemployed, who were hit hardest in the 1996 Budget, were again to carry the burden of the Treasurer’s savings strategy.”