Urbis Think Tank
Record labour shortage in growth states presents stark choice for Gillard.
This month the ABS released both the quarterly job vacancy data and population statistics. The job vacancies show that Australia has hit a record level of labour shortage (seasonally adjusted). While WA continues to be under enormous labour stress, it is the surge in job vacancies in Victoria that has pushed the labour market to the brink. In Victoria, job vacancies in February were up 48% on this time last year. If this shortage continues through 2011, interest rates will be forced up, which may hurt Retail Trade, construction and other rate sensitive industries. This leads to the stark choice for Gillard/Swan – increasing migration now could ease the labour shortage and reduce these impacts.
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