ABC’s The Business ran an excellent segment (above) examining the deep recession underway, as evident by the prolonged contraction in state final demand:
The deteriorating employment market:
As well as falling house prices and rents.
As shown in the segment, factories are shuttering left and right in the outer-Perth industrial belts, whereas in the CBD and inner-city district of West Perth, offices and shopfronts are littered with sign after sign reading “For Lease”.
People servicing industries like cafes and restaurants are also feeling the pinch, with the cost of a coffee falling from a boom-time peak of $5 or $6 to around $3.50 currently.
About the only area of employment that is booming in Perth is Uber driving, with more than 20% of drivers formerly working in the mining and resources economy:
Girrawheen resident John Sesay earned good money as a bricklayer during the boom – until his back buckled from the work.
After two years unemployed, he’s grateful to have found work as an Uber driver, loves the social contact, and takes pride in the sense of service it provides.
Living in a community where one in four adults is out of work, he counts himself lucky.
But the money? “There is no comparison,” he says.
Working six hours a day – the most he can tolerate with his bad back – Mr Sesay says he will bring in between $60 and $150, depending on demand.
Uber driving has been a lifeline for a lot of workers who used to enjoy the high-income life of the mining boom.
The segment ended with a salient comment from James England from the Australian Steel Institute:
“Investment money that’s funneled towards houses and the resources industry is certainly not helping the rest of the economy be productive.
The Local economy is unfortunately based on houses and holes, and that’s not sustainable for Western Australia or the rest of the nation”.
Where have we heard that before?
