Western Australian Economy
Feb 17th 2009, 7:58 am
#1
Forum Regular
Thread Starter
Joined: Aug 2007
Posts: 205
Western Australian Economy
From BBC: http://news.bbc.co.uk/1/hi/business/7840370.stm
The engine room of Australia's economy is showing worrying signs of slipping into reverse.
Corporate leaders and trade unions in the resources-rich West report a collapse in business and consumer confidence amid the international slowdown.
Major mining projects in Western Australia (WA) have been shelved with the loss of thousands of jobs as the boom state feels the financial chill brought on by a slump in demand from key markets such as China.
"People have been surprised at how quickly the global situation has started to come home to us in Western Australia," says Simone McGurk, assistant secretary of Unions WA.
"The unemployment figures nationally have gone up slightly to 4.5%.
"In WA we're still going okay at 2.8% and we're the lowest in the country, but people are very nervous about what's going to happen and how the resource sector is going to be impacted."
Tough changes
In Western Australia we lead a very charmed existence
Simone McGurk, assistant secretary of Unions WA
Mining king BHP Billiton is to cut more than 3,000 jobs in Australia and a major nickel mine will close.
And further redundancies are expected as a once mighty industry faces what is likely to be more downward pressure on commodity prices and demand.
"This is a whole generation of workers, particularly in the resources sector, who are astounded," Ms McGurk says, insisting that few had given the possibility a thought until it actually happened.
"In Western Australia we lead a very charmed existence," he says.
"It's not only our coastline and our weather, but we have enormous natural resources that we've been able to exploit.
"The challenge for our government is to make sure that the community can withstand these changes."
Long-term prospects good
A very warm summer has sent the people of Perth hurrying to the beaches.
If China pulls through then the Western Australian economy will be fine
Professor Ernst Weber, University of Western Australia
But beneath the city's relaxed exterior, it is far from business as usual in this isolated corner of the Australian continent.
"Corporate confidence in Western Australia is at its lowest level in a decade, according to a survey by the Commonwealth Bank and the Chamber of Commerce and Industry of Western Australia (CCI).
"I think there is an understandably, but, I don't believe, justified level of concern bordering on panic," says CCI chief executive James Pearson.
Mr Pearson says the antidote for such ominous times are low interest rates and taxes, as well as better access to credit and spending on public infrastructure.
"This will be a time when good firms will see an opportunity to baton down the hatches to get through this temporary storm and then be well positioned for the inevitable economic upturn," he says.
"Even though China and India and other emerging economies in Asia are being hit by the global financial crisis, long-term demand will return and the prospects for this state, which is more exposed than any other in Australia to the international economy, are very good."
Depends on China
Senior corporate figures inists Western Australia's mining boom is enduring a "temporary set-back".
Economic activity has slowed down dramatically
Analyst are less optimistic and insist that the good times are over.
Ernst Weber, professor of economics at the University of Western Australia, is predicting that unemployment will rise by up to 2% while house prices in Perth could tumble by a fifth.
"The global financial crisis had not affected Australia very much until the end of last year, but in the past few weeks we've seen a decline in economic activity in Western Australia," he says.
"The losers are naturally the people who get laid off in the mining industry and you will also see a downturn in the housing sector, so construction workers may be more hurt by it."
It could take two or three years before the local economy bounces back, Professor Weber predicts.
"In Western Australia, it really depends on what's happening in Asia and the strength of the Chinese economy and to a lesser degree on the Indian economy," he says.
"If China pulls through then the Western Australian economy will be fine in the next few years."
The engine room of Australia's economy is showing worrying signs of slipping into reverse.
Corporate leaders and trade unions in the resources-rich West report a collapse in business and consumer confidence amid the international slowdown.
Major mining projects in Western Australia (WA) have been shelved with the loss of thousands of jobs as the boom state feels the financial chill brought on by a slump in demand from key markets such as China.
"People have been surprised at how quickly the global situation has started to come home to us in Western Australia," says Simone McGurk, assistant secretary of Unions WA.
"The unemployment figures nationally have gone up slightly to 4.5%.
"In WA we're still going okay at 2.8% and we're the lowest in the country, but people are very nervous about what's going to happen and how the resource sector is going to be impacted."
Tough changes
In Western Australia we lead a very charmed existence
Simone McGurk, assistant secretary of Unions WA
Mining king BHP Billiton is to cut more than 3,000 jobs in Australia and a major nickel mine will close.
And further redundancies are expected as a once mighty industry faces what is likely to be more downward pressure on commodity prices and demand.
"This is a whole generation of workers, particularly in the resources sector, who are astounded," Ms McGurk says, insisting that few had given the possibility a thought until it actually happened.
"In Western Australia we lead a very charmed existence," he says.
"It's not only our coastline and our weather, but we have enormous natural resources that we've been able to exploit.
"The challenge for our government is to make sure that the community can withstand these changes."
Long-term prospects good
A very warm summer has sent the people of Perth hurrying to the beaches.
If China pulls through then the Western Australian economy will be fine
Professor Ernst Weber, University of Western Australia
But beneath the city's relaxed exterior, it is far from business as usual in this isolated corner of the Australian continent.
"Corporate confidence in Western Australia is at its lowest level in a decade, according to a survey by the Commonwealth Bank and the Chamber of Commerce and Industry of Western Australia (CCI).
"I think there is an understandably, but, I don't believe, justified level of concern bordering on panic," says CCI chief executive James Pearson.
Mr Pearson says the antidote for such ominous times are low interest rates and taxes, as well as better access to credit and spending on public infrastructure.
"This will be a time when good firms will see an opportunity to baton down the hatches to get through this temporary storm and then be well positioned for the inevitable economic upturn," he says.
"Even though China and India and other emerging economies in Asia are being hit by the global financial crisis, long-term demand will return and the prospects for this state, which is more exposed than any other in Australia to the international economy, are very good."
Depends on China
Senior corporate figures inists Western Australia's mining boom is enduring a "temporary set-back".
Economic activity has slowed down dramatically
Analyst are less optimistic and insist that the good times are over.
Ernst Weber, professor of economics at the University of Western Australia, is predicting that unemployment will rise by up to 2% while house prices in Perth could tumble by a fifth.
"The global financial crisis had not affected Australia very much until the end of last year, but in the past few weeks we've seen a decline in economic activity in Western Australia," he says.
"The losers are naturally the people who get laid off in the mining industry and you will also see a downturn in the housing sector, so construction workers may be more hurt by it."
It could take two or three years before the local economy bounces back, Professor Weber predicts.
"In Western Australia, it really depends on what's happening in Asia and the strength of the Chinese economy and to a lesser degree on the Indian economy," he says.
"If China pulls through then the Western Australian economy will be fine in the next few years."
Feb 18th 2009, 8:02 pm
#2
Forum Regular
Joined: Nov 2008
Location: Perth
Posts: 50
Re: Western Australian Economy
Yes, financial and resources are equally affected across the world. Obviously with China importing less minerals the mining sector has been badly hit.
The construction (commercial) still experience a bouyant time. There are various economic publications available and you can find a link to them on our sister website below 'perth migrant support' <WA economy>
Hope it helps
The construction (commercial) still experience a bouyant time. There are various economic publications available and you can find a link to them on our sister website below 'perth migrant support' <WA economy>
Hope it helps
Feb 19th 2009, 1:18 am
#3
Forum Regular
Joined: Jul 2006
Posts: 226
Re: Western Australian Economy
Spoke to a mate who is a builder in PErth & his foreman told him in 12 months there will be nuthin to do ,he is on an 18 month contract at Claremont shopping centre so he is ok for a while ,the 2 companies i used to work for in credit have all lost at least 4 o r 5 staff and neither are replacing staff ,looks like they are bracing themselves for the fallout ,hopefully the house prices will crash by the end of the year then we can buy a house and get out of Melbourne-way too many sandal wearers here 
Feb 19th 2009, 2:15 am
#4
Has left the building
Joined: Mar 2007
Posts: 4,079
Re: Western Australian Economy
The hardest hit will be the ignorant and uneducated. Unskilled labour rate expected to drop to minimum wage (where it should be)
Feb 19th 2009, 2:20 am
#5
Account Open
Joined: Jan 2005
Location: Brisbane
Posts: 4,298
Re: Western Australian Economy
I think the worst time will be between Sep 09 and June 2010. At the moment it seems that many small businesses are just treading water, surely it will only be a matter of months before many of them go under.
Feb 19th 2009, 2:21 am
#6
(It's not my real name)
Joined: Sep 2002
Location: Ilukapool. WA
Posts: 12,467
Re: Western Australian Economy
Does that mean that people are no longer going to be able to earn $100K for cleaning the bogs on minesites?
Feb 19th 2009, 3:32 am
#10
BE Forum Addict
Joined: Oct 2005
Location: Perth
Posts: 3,453
Re: Western Australian Economy
I think many industries have momentum from the pent-up demand over the last few years. The difficult times will be, as someone said earlier, in a few months when all of the contracts, house builds, etc from the last year or so are not replaced with others.
Feb 19th 2009, 5:33 am
#12
Banned
Joined: Jan 2009
Posts: 1,157
Re: Western Australian Economy
Things are not bad yet but they will get bad...not as bad as the UK though. British and Irish on WHV's will struggle to get work, You will need to come here on a skilled visa.
Feb 19th 2009, 5:50 am
#13
Account Closed
Joined: Dec 2003
Posts: 2,375
Re: Western Australian Economy
F**k me ... it's like Sky News on here ...
Where's the next disaster we can cover ???
It's tough out there, yes, we know ... it may get tougher, in all probability it will ... don't dwell already ... prepare.
3
The eternal optomist
Where's the next disaster we can cover ???
It's tough out there, yes, we know ... it may get tougher, in all probability it will ... don't dwell already ... prepare.
3
The eternal optomist
Feb 19th 2009, 5:54 am
#14
(It's not my real name)
Joined: Sep 2002
Location: Ilukapool. WA
Posts: 12,467
Re: Western Australian Economy
Sadly a lot of 457'ers will have to pack their bags, just like my mate's dad who is on his way back to South Africa after being re-trenched.
Feb 19th 2009, 5:55 am
#15
(It's not my real name)
Joined: Sep 2002
Location: Ilukapool. WA
Posts: 12,467
