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Boom.. Boom... BOOM !!! Australia

axe168

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Loyal
City to top 7m people
TIM COLEBATCH
October 23, 2009

MELBOURNE'S population will grow to almost 7 million by 2049, federal Treasury has projected, doubling in the space of 50 years as an unending mining boom brings more and more migrants into Australia.

But revealing the figure yesterday, Treasury secretary Ken Henry voiced fears that Australia might be unable to handle another 13 million people by 2049 without serious environmental losses. ''With a population of 22 million, we haven't managed to find accommodation with the environment,'' Dr Henry told an audience in Brisbane.

''Our record has been poor, and in my view, we are not well placed to deal effectively with the environmental challenges posed by a population of 35 million.''

In a speech of outspoken frankness, optimism and gloom at the same time, Dr Henry argued that Australia was poised to ride a minerals boom that would last for decades, as India and China grew inexorably towards achieving Western standards of living.

But the Treasury chief, who is passionate about Australian wildlife and the bush, warned that the changes ahead ''will test the limits of sustainability: economic, social and environmental''.

He hit out at Australia's poor record in preserving biodiversity, singling out the commercial slaughter of kangaroos, saying almost 50 million had been killed in a decade, mostly to be added to pet food.

He also warned that for people occupying ''the driest inhabited continent on earth'', adapting to climate change and tackling its consequences could produce ''the largest structural adjustment in our economic history''.

Last night Prime Minister Kevin Rudd strongly disagreed with his Treasury chief on the merits of population growth, telling the 7.30 Report: ''I actually believe in a big Australia. I make no apology for that.

''I actually think it's good news that our population is growing,'' Mr Rudd said.

''I think it is good for us, it's good for our national security long term, it's good in terms of what we can sustain as a nation.''

The Age reported last month that Melbourne's population had surged past 4 million, with its growth running at 1800 a week - while Treasurer Wayne Swan revealed that Treasury projects Australia's population to grow from 22 million now to 35 million by 2049.

Dr Henry said yesterday that most of this growth would go into just four cities. ''On quite reasonable assumptions, we can imagine Sydney and Melbourne growing from 4½ and 4 million people today to cities of almost 7 million,'' he said. ''Brisbane, we think, will more than double in size to be 4 million people 40 years from now.

''How will Sydney cope with a 54 per cent increase in its population, Melbourne a [COLOR="_______"]74[/COLOR] per cent increase, and Brisbane a [COLOR="_______"]106[/COLOR] per cent increase?

''Surely not by continuing to expand their geographic footprints at the same rate as in the past several decades. Surely not by loading more cars and trucks onto road networks that can't cope with today's traffic. However our cities do cope, they will have to find ways of securing a sustainably higher level of investment in public infrastructure.''

Dr Henry, who chairs the Government's review of the tax system, has flagged that it will propose a congestion tax to try to reduce peak traffic.

Yesterday he also flagged that it will propose to help Australian manufacturing cope with what he sees as a long-term loss of resources to mining.

The main theme of his speech was that China and India have entered an era of rapid growth that will mean Australia's mining boom continues for decades - keeping the dollar at high levels, and drawing capital and workers from manufacturing, traditionally Victoria's main industry.

Dr Henry said Australia would need much greater investment to supply the boom and deal with its consequences, requiring decades of further borrowing.

----------------------------------------------------------------------

Oh dear.. pappies will continue to curse us ?!! I make no apology on this, I'm going to spend my mighty AUD on your Univeral Studio and F1.. win-win ? hehehe
 

neddy

Alfrescian (Inf)
Asset
Golden age 'will stretch to 2050': Ken Henry
David Uren, Michael Sainsbury and Sarah Elks

October 23, 2009 05:58am

TREASURY chief Ken Henry predicts a golden age for the Australian economy lasting to at least 2050, built on population growth and Asian demand for resources .

Dr Henry said the period ahead would impose great challenges on the government to pursue economic reform but "with the right decisions, one can envisage a period of unprecedented prosperity", The Australian reports.

Directly rebutting the views of leading economist Ross Garnaut, Dr Henry said Australia would comfortably manage the big and sustained current account deficits that would be caused by the investment boom.

Dr Henry's comments came as Chinese growth rose to 8.9per cent in the third quarter of the year after hitting a record low in March.

The world's third-largest economy, which is due to pass Japan to grab second spot next year, saw growth of 7.7 per cent in the first nine months. Its latest figures will all but assure the country of hitting its 8 per cent target for this year.

"China's investment-fuelled recovery has propped up Australia's economy," said Royal Bank of Scotland China economist Ben Simpfendorfer.

Evidence of China's effect on the economy came as departing BHP Billiton chairman Don Argus warned the Rudd government to keep Australia's mineral resources from being snatched by foreign state-owned entities.

Speaking in Melbourne yesterday, Mr Argus said Australia was at risk of following Canada in having much of its natural resources owned by foreign investors.

Dr Henry told a business forum at Queensland University of Technology that the rapid growth in the population, caused by much higher migration and a rise in the fertility rate, had transformed thinking about the impact of population ageing on the economy, and would require large-scale economic and social infrastructure.

He said the projection that the population would rise to more than 35 million people by 2050 implied that Sydney and Melbourne would grow to cities of seven million, while Brisbane would more than double in size to four million.

Sydney's population would rise by 54 per cent, Melbourne's by 74 per cent and Brisbane's by 106 per cent. This would impose challenges for planners, as the cities could not expand simply by increasing their geographic footprints. It would also put pressure on skills training and government services.

Dr Henry said greater national leadership was needed on the issue of urban settlement.

"I don't see how we're going to deal appropriately with these challenges without that," Dr Henry said.

"That, incidentally, does not necessarily mean abolishing the states. COAG can show real leadership."

Dr Henry said the population increase would help manage the dislocation caused by rapid growth in the resource industry.

"While the global financial crisis has taken some of the heat out of our export prices, we should get used to the idea that we could have structurally higher terms of trade for some time, possibly for several decades," he said, adding that the budget estimate that export prices would fall by 15 per cent relative to import prices may prove too conservative.

Two years ago, during the peak of the resources boom, Dr Henry warned it would force an accelerated decline in manufacturing industry.

However, he said the revised estimates of population growth meant that the expansion of the resource sector need not necessarily come at the expense of manufacturing.

Dr Henry said climate change and the continuing advance of technology would also bring much higher levels of investment. Once there was a price put on carbon, there would be a capital intensive period of adjustment to more energy-efficient technology.

The financial crisis had highlighted the dependence of Australian banks on global short-term money markets, and put the banks through "the most demanding stress test" of that vulnerability.

"Having passed that test provides grounds for some confidence, though certainly not complacency, in the strength of our policy frameworks and decision making."

Dr Henry said Australia would not have been able to manage the investment boom and the challenges of population growth and climate change with the inflexible economy of the 1960s, 1970s and 1980s.

"But these forces are hitting now, at a time when we have implemented 25 years of economic reforms; when the Australian economy has just demonstrated to the rest of the world that, for some time now, it has quite possibly been the best governed, most flexible, most resilient of all industrialised economies; when there is unprecedented global interest in us; and when there is, domestically, a strong appetite for further policy change," he said.
 

axe168

Alfrescian
Loyal
Oh dear.. pappies will continue to curse us ?!! I make no apology on this, I'm going to spend my mighty AUD on the Univeral Studio and F1.. win-win ? hehehe :biggrin::wink::smile::rolleyes::o:p
 

neddy

Alfrescian (Inf)
Asset
Oh dear.. pappies will continue to curse us ?!! I make no apology on this, I'm going to spend my mighty AUD on the Univeral Studio and F1.. win-win ? hehehe :biggrin::wink::smile::rolleyes::o:p

PAP will be happy that you are "remitting" money back to Singapore.

Singapore is humid and sticky, not to mention the tropical downpour.
Is Universal City in Singapore air-con?
 

neddy

Alfrescian (Inf)
Asset
Sound like fun ....

Universal Studios theme-park at Sentosa to offer 18 unique rides and attractions
Posted: 20 October 2009 1617 hrs


Photos 1 of 1

World's tallest duelling roller-coasters, one seated and the other suspended, in Battlestar Galactica CYCLON vs HUMAN ride

Video

Universal Studios theme-park at Sentosa to offer 18 unique rides and attractions









SINGAPORE: Island resort Sentosa will soon be home to the world's tallest duel roller-coaster ride and movie stars such as Marilyn Monroe, Shrek and the motley mob of Alex, Marty, Melman and Gloria last spotted in Madagascar, the movie.

The Universal Studios theme-park which will be housed on the 49-hectare Resorts World at Sentosa, revealed Tuesday its two dozen attractions, including 18 rides and attractions specially created or adapted for Singapore.

"Universal Studios Singapore will be its own unique experience and family destination with many new rides, shows and themes that can't be found at other Universal Studios parks around the world," said Tom Williams, chairman and CEO, Universal Parks & Resorts.

Williams said of Tuesday's unveiling of some of the theme-park's attractions, that attention was paid to location-specific creatives and designs so as to offer both first-time and devoted Universal Studios visitors, an exciting, different and memorable experience.

The theme-park will feature seven zones, each with its own iconic food outlets and entertainment attractions. Tied in to movie favourites are the Madagascar and Far Far Away zones, featuring attractions for both young and old.

Visitors can explore Shrek's swamp home, a castle and party at a Knight Club, or 'move it, move it' with wacky King Julien at a beach party after outwitting the Foosa in an original, one-of-a-kind immersive river ride that should be as wild as the lemur tribe of Madagascar.

Sci-fi buffs will have a city of their own and be able to join in the Human vs Cylons battle on the Battlestar Galactica dueling coasters, the tallest of its kind in the world. Another battle in this zone is the highly-anticipated Transformers ride which debuts at Universal Studios Singapore before heading out to the US theme-park.

As for adventure-seekers, they can trip to the 1930's Golden Age of Egyptian Exploration to discover the Sphinx, Pharaoh's tombs and mummies in the Revenge of the Mummy attraction, or take on the Lost World zone inhabited by dinosaurs at the redesigned Jurassic Park Rapids Adventure and Waterworld, with death defying stunts.

At the Hollywood zone, visitors can expect Broadway-style theatre modelled after the famous Hollywood Pantages Theatre and walk down Hollywood Boulevard complete with the famous Walk of Fame.

Without hopping on a jet, visitors will be transported to New York for a slice of the Big Apple, from NY-style pizza to movie-set scenes, including a special effects stage with Steven Spielberg who offers behind-the-scenes peeks and Stage 28 for star wannabes who get a chance to be part of a movie production.

"Asians love movies and we are proud to introduce the region's first and only Universal Studios theme park," said Tan Hee Teck, CEO of Resorts World Sentosa.

According to Tan, the project is in the final stages of construction, and Universal Studios Singapore will be one of the biggest and most exciting theme-parks in the world.

Apart from Asia's only Universal Studios theme park, which will have 30 restaurants and food carts, as well as 20 retail stores and carts supporting the various attractions, Resorts World boasts the world's largest Marine Life Park, a destination spa – ESPA - and a designer casino.

Resorts World at Sentosa is slated to have its soft opening in early 2010.

- CNA/sf
 

axe168

Alfrescian
Loyal
PAP will be happy that you are "remitting" money back to Singapore.

Singapore is humid and sticky, not to mention the tropical downpour.
Is Universal City in Singapore air-con?

Air-con.. ?? No need lah.. juz hang your sweaty lum-par outside your shorts.. take the ride.. and enjoy the it dangling around.. hahahaha
 

Ash007

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Loyal
hmmm very strange, thought they would be posting something by now.
I suppose they not that dumb after all to know they can't win in an argument here. :biggrin::biggrin::biggrin::biggrin::biggrin::biggrin:
 

axe168

Alfrescian
Loyal
hmmm very strange, thought they would be posting something by now.
I suppose they not that dumb after all to know they can't win in an argument here. :biggrin::biggrin::biggrin::biggrin::biggrin::biggrin:

They keep posting junks on their titles/headings.. the main reason is to divert the attention or show the new wanabes the merry-go-round..

Each of us hv our own inspiring stories.. and it is a "no-no" for pappies.. when the big daddy is taking action.. you have no rights to decide..
 

neddy

Alfrescian (Inf)
Asset
Air-con.. ?? No need lah.. juz hang your sweaty lum-par outside your shorts.. take the ride.. and enjoy the it dangling around.. hahahaha

what if ho ching is around and sees it? :cool:
assloon may bring me to the marbles table.
 

IWC2006

Alfrescian
Loyal
what if ho ching is around and sees it? :cool:
assloon may bring me to the marbles table.

Oz is predicted to surge by 62% in population growth in the next 4 decade (22->35 mil)..wow..something sg gov can onl dream to happen insg. Point is Oz has no problem attracting long stay immigrants, whereas Sg gets only the short term stayers and usually lower quality migrants.....even with Universal studio, is still not the real deal as esp with the weak USD thus make it all worth it to get the real experience at Orlando or LA.
 

neddy

Alfrescian (Inf)
Asset
HDB - A 21st Century challenge
By Seah Chiang Nee.
Oct 24, 2009

SINGAPORE’S public housing, which has gained world acclaim for creating a nation of homeowners, is sagging under the weight of a wave of foreign arrivals.

In recent weeks, the government has been peppered with complaints from Singaporeans — some of them newlywed graduates — about insufficient new subsidised flats despite repeated applications.

One claimed he had failed 11 times while others talked of two or three failed attempts.

The latest public offer of 2,132 new flats for sale drew 20,394 applicants, which means that nine in 10 will be disappointed.

Another 5,000 units will be launched before the end of the year.

The rejected Singaporeans who cannot wait any longer will have to turn to the dearer resale market, where they will face stiff competition from rich foreigners holding permanent residency (PR) status.

PRs made up 40% of buyers in the open market during the past five years, resulting in prices rising by 40%.

One local benefit, however, is that a newly married Singaporean couple is given a S$40,000 grant to buy a HDB resale unit.

The squeeze is due to two factors: firstly, a PR population hike of 51% to 553,000 since 2004, and secondly, more citizens demanding central or mature areas.

Today’s inadequacy is a far cry from the previous generation’s when the Housing Development Board (HDB) successfully mass-built cheap homes for hundreds of thousands.

One of the earliest stories I wrote as a reporter was about the HDB’s world record of building one housing unit every 45 minutes.

The question of subsidised housing is of crucial importance to Singaporeans who are trying to cope with one of the highest costs of living in Asia.

The passion Singaporeans have for property can only be understood by people living in land-squeezed cities.

After independence in 1965, then Prime Minister Lee Kuan Yew announced the objective of creating a home-owning society.

“If every family owned its home, the country would be more stable … I believe this sense of ownership was vital for our new society,” Lee said later.

Today, 86% of Singaporeans live in HDB flats and more than 90% own their home.

It was Lee’s housing programme that endeared his party to the old generation of squatter-living Singaporeans.

Now, the HDB is facing a strong challenge, catering to a new generation with higher expectations than their parents.

“Its achievement made the PAP (People’s Action Party) one of the most successful parties in Asia; it can also bring it down if it stumbles,” said a professional, who is still paying off a 30-year HDB loan.

Critics have accused the HDB of trying to replace the social task of providing cheap public housing with one dictated more by market forces.

Government officials say the HDB is building enough flats for local needs, and applicants failed to get one — even repeatedly — because they were too choosy, not because of inadequate supply.

“We promise every eligible citizen an affordable flat, nothing about meeting his choice location,” one official added.

There are regulations against speculating on HDB flats but there is no ban on it.

As a result, many Singaporeans and PRs — including those from Malaysia and Hong Kong — have made profits buying and selling resale apartments after a few years.

No foreigner may buy HDB flats but may rent them, also indirectly pressuring supply.

However, PRs are allowed to buy resale units.

Several years ago, there were stories of Hong Kong businessmen settling here as new PRs and making a killing selling their HDB units (the second time entailing a levy on the profits).

The slow building rate is not entirely due to poor anticipation of demand — but also to shrinking living space, particularly in choice areas where prices rose the sharpest.

The older generation was happy to accept any home offered to it, but not today’s.

“Now, people want only new units in a mature estate,” an official said. “Unfortunately, such places are becoming fewer.”

The foreign influx is, of course, the biggest cause of recent price increases.

With Singapore out of recession, financial consultant Leong Sze Hian has predicted another 10% hike in resale HDB prices.

Minister for National Development Mah Bow Tan insists there are sufficient public flats for Singaporeans and prices “remain very affordable”.

Eight out of every 10 first-time applicants of HDB flats would succeed in getting one on their first try, the board said.

In a recent online poll, however, 65% of Singaporeans described HDB prices as totally or slightly unaffordable.

Three out of 10 said they were “barely” so while 5.19% found them comfortable.

The sharp price rise in public flats is generally good news for the vast majority of existing owners, allowing many to sell out and upgrade to private properties.

In a speech during the generation change, Lee likened life in Singapore to a marathon race in which the second lap was about to begin.

For all who finish this race (not merely the “winners”), Lee said one possible reward was to provide everyone a second property.

That was, of course, before the massive arrival of immigrants.

Prime Minister Lee Hsien Loong, whose priority is to contain the problem, has announced that the intake of foreigners will be slowed down.

As Singapore’s population hits five million, the space squeeze is also being felt in the private market.

In the past year, developers have been selling tiny flats of less than 46.45 sq m — the latest on offer being a 26.48 sq m “Mickey Mouse” flat. (That is the size of my house's powder room)




Oz is predicted to surge by 62% in population growth in the next 4 decade (22->35 mil)..wow..something sg gov can onl dream to happen insg. Point is Oz has no problem attracting long stay immigrants, whereas Sg gets only the short term stayers and usually lower quality migrants.....even with Universal studio, is still not the real deal as esp with the weak USD thus make it all worth it to get the real experience at Orlando or LA.
 

axe168

Alfrescian
Loyal
It comes with no surprise. this is the reason i bought 1000m2 at 8-9km from CBD [with no yield]... soon everyone will be occupying 50m2, which my land cld produce 20 apt !! :wink: All i need is to WAIT....for capital gain -no tax for primary hse :biggrin::smile::wink::p:rolleyes::rolleyes:
 

neddy

Alfrescian (Inf)
Asset
It comes with no surprise. this is the reason i bought 1000m2 at 8-9km from CBD [with no yield]... soon everyone will be occupying 50m2, which my land cld produce 20 apt !! :wink: All i need is to WAIT....for capital gain -no tax for primary hse :biggrin::smile::wink::p:rolleyes::rolleyes:

Australian Financial Review
Companies are reviving projects that were mothballed during the economic slump and are worth a combined $A16bn, as commodity markets strengthen and access to financing is becoming easier to achieve again.

:smile:
 

axe168

Alfrescian
Loyal
Australian Financial Review
Companies are reviving projects that were mothballed during the economic slump and are worth a combined $A16bn, as commodity markets strengthen and access to financing is becoming easier to achieve again.

:smile:

Hang on there.. prepare for the sail and get ready for the waves... once wave comes, you'll sail to SG to retire ?
 

neddy

Alfrescian (Inf)
Asset
Australian Employment Surges 24,500; Currency Rises (Update1)
By Jacob Greber

Nov. 12 (Bloomberg) -- Australian employers unexpectedly added workers in October, pushing the nation’s currency to its highest level this year on speculation the central bank will raise interest rates for a record third straight month.

The number of people employed rose 24,500 from September, the statistics bureau said in Sydney today. The median estimate of 20 economists surveyed by Bloomberg was for a decline of 10,000. The jobless rate rose to 5.8 percent from 5.7 percent.

Australia’s economy is expanding with “less spare capacity than earlier thought likely,” the central bank said last week, as China’s demand for resources spurs companies such as Chevron Corp. to hire workers. Reserve Bank Governor Glenn Stevens will raise the benchmark interest rate by a quarter percentage point on Dec. 1 to 3.75 percent, economists surveyed by Bloomberg say.

“Quarter-point increases are on for every meeting until they get to 5 percent,” said John Honan, chief economist at Ausbil Dexia Ltd. in Sydney, who forecast today’s gain in employment.

“The retail sector is employing, as is the services sector and labor-intensive areas of housing activity, plus the obvious resources-based investment,” Honan added.

The Australian dollar, the best performing major currency of the last 12 months, surged to 93.45 U.S. cents at 1:28 p.m. in Sydney from 93.10 cents just before the report was released. The two-year government bond yield climbed to 4.72 percent from 4.68 percent.

Rate Bets

Investors are betting there is an 84 percent chance of a quarter-point boost in December, according to Bloomberg calculations based on interbank futures on the Sydney Futures Exchange at 1:14 p.m. Prior to today’s report, they saw a 70 percent chance of an increase. It would be the first time the central bank has raised rates at three successive meetings.

Some 14 of 17 economists surveyed by Bloomberg expect Stevens to raise the benchmark interest rate on Dec. 1 by a quarter percentage point to 3.75 percent.

Australia in October became the first Group of 20 economy to raise borrowing costs since the height of the global recession. By contrast, G-20 nations said at the weekend that interest rates should be kept low and record budget deficits maintained until recoveries take hold.

The number of full-time jobs gained 2,900 in October and part-time employment increased 21,500, today’s report showed.

Cash Handouts

Australia’s economy is growing faster and generating more jobs than the government and central bank forecast earlier this year, helped by Stevens’s decision to slash borrowing costs by a record 4.25 percentage points between September 2008 and April to a half-century low of 3 percent.

Growth was also boosted in the first half of this year by more than A$20 billion ($19 billion) in cash handouts to households from Prime Minister Kevin Rudd’s government. Another A$22 billion is being spent on roads, ports and schools.

“It looks like all sectors of the economy have started to pick up,” said Annette Beacher, an economist at TD Securities Ltd. in Singapore. Employment will increase by between 10,000 and 15,000 in coming months, she added.

David Jones Ltd., the nation’s largest department store, has employed 1,700 permanent part-time staff in the lead-up to Christmas. Michael Luscombe, chief executive officer of Australia’s largest retailer, Woolworths Ltd. told Bloomberg in an Oct. 20 telephone interview the company has 6,000 job vacancies.

Global Contrast

By contrast, the unemployment rate in the U.S. jumped to 10.2 percent last month, the highest level since 1983 and the European Union’s rate climbed to 9.7 percent in September, the worst result since January 1999.

Signs of a rebound in Australian employment were among reasons Stevens raised the overnight cash rate target by a quarter point in October and this month to 3.5 percent, and signaled further “gradual” increases.

“The Australian economy is operating with less spare capacity than earlier thought likely, and the outlook for the next few years has improved,” the central bank said in its quarterly monetary policy statement last week.

While employment growth is expected “to be subdued” over the next couple of quarters, before accelerating in 2010, the outlook for the labor market has “improved” since the bank’s August policy statement, it said on Nov. 6. It didn’t provide specific forecasts for the jobless rate.

Gross domestic product growth will accelerate from 1.75 percent this year to 3.25 percent in 2010, the bank said. In August, it forecast gains of 0.5 percent and 2.25 percent respectively. The economy expanded 1 percent in the first half of this year.

West Booms

The economy is forecast to continue its expansion in 2011 and 2012 as companies boost investment in resources, including Western Australia’s A$43 billion Gorgon liquefied natural gas project owned by Chevron, Exxon Mobil Corp. and Royal Dutch Shell Plc.

Projects such as Gorgon, which is expected to generate 10,000 jobs, were among reasons the government this month scrapped a May prediction that the jobless rate would rise to 8.25 percent in the second quarter of next year.

More than A$100 billion of resources projects expected to generate some 40,000 construction jobs are in progress or planned in resource-rich Western Australia “during the next few years,” according to a state government report on Nov. 4. Those developments may lead to 12,500 permanent jobs, it estimated.

Western Australia’s unemployment rate fell 0.7 percentage point to 5 percent in October, the lowest level in five months. In Queensland, another major mining state, the jobless rate declined to 6 percent from 6.3 percent. By contrast, Australia’s most populous state, New South Wales, home to Sydney, jumped to 6.1 percent from 5.5 percent.

Jobless Peak

Treasurer Wayne Swan said on Nov. 2 that unemployment will peak at 6.75 percent by the June quarter of 2010 before decreasing to 6.5 percent the following year. Swan told reporters in Singapore today, where he is attending the Asia- Pacific Economic Co-operation forum, that Australia still faces a “substantial challenge” on unemployment and the government will maintain its economic stimulus.

“About 670,000 Australians unemployed is a very substantial number and we also know many more people are working reduced hours as a consequence of this global recession, so the government is absolutely focused on supporting employment in the Australian economy,” he said.

Recent reports showed business confidence rose in October to near its highest level in almost six years, home-loan approvals gained in September by the most in six months and house prices jumped 8.4 percent in the six months through Sept. 30.

The participation rate, which measures the labor force as a percentage of the population aged over 15, held at 65.2 percent in October, today’s report showed.

To contact the reporter for this story: Jacob Greber in Sydney at [email protected]

Last Updated: November 11, 2009 21:49 EST
 

axe168

Alfrescian
Loyal
One word : yahoo !
Australian Employment Surges 24,500; Currency Rises (Update1)
By Jacob Greber

Nov. 12 (Bloomberg) -- Australian employers unexpectedly added workers in October, pushing the nation’s currency to its highest level this year on speculation the central bank will raise interest rates for a record third straight month.

The number of people employed rose 24,500 from September, the statistics bureau said in Sydney today. The median estimate of 20 economists surveyed by Bloomberg was for a decline of 10,000. The jobless rate rose to 5.8 percent from 5.7 percent.

Australia’s economy is expanding with “less spare capacity than earlier thought likely,” the central bank said last week, as China’s demand for resources spurs companies such as Chevron Corp. to hire workers. Reserve Bank Governor Glenn Stevens will raise the benchmark interest rate by a quarter percentage point on Dec. 1 to 3.75 percent, economists surveyed by Bloomberg say.

“Quarter-point increases are on for every meeting until they get to 5 percent,” said John Honan, chief economist at Ausbil Dexia Ltd. in Sydney, who forecast today’s gain in employment.

“The retail sector is employing, as is the services sector and labor-intensive areas of housing activity, plus the obvious resources-based investment,” Honan added.

The Australian dollar, the best performing major currency of the last 12 months, surged to 93.45 U.S. cents at 1:28 p.m. in Sydney from 93.10 cents just before the report was released. The two-year government bond yield climbed to 4.72 percent from 4.68 percent.

Rate Bets

Investors are betting there is an 84 percent chance of a quarter-point boost in December, according to Bloomberg calculations based on interbank futures on the Sydney Futures Exchange at 1:14 p.m. Prior to today’s report, they saw a 70 percent chance of an increase. It would be the first time the central bank has raised rates at three successive meetings.

Some 14 of 17 economists surveyed by Bloomberg expect Stevens to raise the benchmark interest rate on Dec. 1 by a quarter percentage point to 3.75 percent.

Australia in October became the first Group of 20 economy to raise borrowing costs since the height of the global recession. By contrast, G-20 nations said at the weekend that interest rates should be kept low and record budget deficits maintained until recoveries take hold.

The number of full-time jobs gained 2,900 in October and part-time employment increased 21,500, today’s report showed.

Cash Handouts

Australia’s economy is growing faster and generating more jobs than the government and central bank forecast earlier this year, helped by Stevens’s decision to slash borrowing costs by a record 4.25 percentage points between September 2008 and April to a half-century low of 3 percent.

Growth was also boosted in the first half of this year by more than A$20 billion ($19 billion) in cash handouts to households from Prime Minister Kevin Rudd’s government. Another A$22 billion is being spent on roads, ports and schools.

“It looks like all sectors of the economy have started to pick up,” said Annette Beacher, an economist at TD Securities Ltd. in Singapore. Employment will increase by between 10,000 and 15,000 in coming months, she added.

David Jones Ltd., the nation’s largest department store, has employed 1,700 permanent part-time staff in the lead-up to Christmas. Michael Luscombe, chief executive officer of Australia’s largest retailer, Woolworths Ltd. told Bloomberg in an Oct. 20 telephone interview the company has 6,000 job vacancies.

Global Contrast

By contrast, the unemployment rate in the U.S. jumped to 10.2 percent last month, the highest level since 1983 and the European Union’s rate climbed to 9.7 percent in September, the worst result since January 1999.

Signs of a rebound in Australian employment were among reasons Stevens raised the overnight cash rate target by a quarter point in October and this month to 3.5 percent, and signaled further “gradual” increases.

“The Australian economy is operating with less spare capacity than earlier thought likely, and the outlook for the next few years has improved,” the central bank said in its quarterly monetary policy statement last week.

While employment growth is expected “to be subdued” over the next couple of quarters, before accelerating in 2010, the outlook for the labor market has “improved” since the bank’s August policy statement, it said on Nov. 6. It didn’t provide specific forecasts for the jobless rate.

Gross domestic product growth will accelerate from 1.75 percent this year to 3.25 percent in 2010, the bank said. In August, it forecast gains of 0.5 percent and 2.25 percent respectively. The economy expanded 1 percent in the first half of this year.

West Booms

The economy is forecast to continue its expansion in 2011 and 2012 as companies boost investment in resources, including Western Australia’s A$43 billion Gorgon liquefied natural gas project owned by Chevron, Exxon Mobil Corp. and Royal Dutch Shell Plc.

Projects such as Gorgon, which is expected to generate 10,000 jobs, were among reasons the government this month scrapped a May prediction that the jobless rate would rise to 8.25 percent in the second quarter of next year.

More than A$100 billion of resources projects expected to generate some 40,000 construction jobs are in progress or planned in resource-rich Western Australia “during the next few years,” according to a state government report on Nov. 4. Those developments may lead to 12,500 permanent jobs, it estimated.

Western Australia’s unemployment rate fell 0.7 percentage point to 5 percent in October, the lowest level in five months. In Queensland, another major mining state, the jobless rate declined to 6 percent from 6.3 percent. By contrast, Australia’s most populous state, New South Wales, home to Sydney, jumped to 6.1 percent from 5.5 percent.

Jobless Peak

Treasurer Wayne Swan said on Nov. 2 that unemployment will peak at 6.75 percent by the June quarter of 2010 before decreasing to 6.5 percent the following year. Swan told reporters in Singapore today, where he is attending the Asia- Pacific Economic Co-operation forum, that Australia still faces a “substantial challenge” on unemployment and the government will maintain its economic stimulus.

“About 670,000 Australians unemployed is a very substantial number and we also know many more people are working reduced hours as a consequence of this global recession, so the government is absolutely focused on supporting employment in the Australian economy,” he said.

Recent reports showed business confidence rose in October to near its highest level in almost six years, home-loan approvals gained in September by the most in six months and house prices jumped 8.4 percent in the six months through Sept. 30.

The participation rate, which measures the labor force as a percentage of the population aged over 15, held at 65.2 percent in October, today’s report showed.

To contact the reporter for this story: Jacob Greber in Sydney at [email protected]

Last Updated: November 11, 2009 21:49 EST
 

neddy

Alfrescian (Inf)
Asset
Anyone check out SEEK for employment opportunities in WA lately ... No need govt to report job ads have gone up. We know. Property agents are ready too.
 

axe168

Alfrescian
Loyal
Anyone check out SEEK for employment opportunities in WA lately ... No need govt to report job ads have gone up. We know. Property agents are ready too.

At one point i was toying around to move to Perth due to opportunity.. Haiz but wifey shot down the proposal. My family is happy here.. Guess i will miss the waves in perth.
 

axe168

Alfrescian
Loyal
Anyone check out SEEK for employment opportunities in WA lately ... No need govt to report job ads have gone up. We know. Property agents are ready too.

There's a credible report claiming WA has more companies operating than Sydney.. but in a smaller scale.. From the looks of it, it is likely to enjoy a very good growth.. Well done Perth... KNN.. i am so jealous !
 
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