Australian Economy

This might be good or it might be bad.

Another bogus report has emerged claiming that half of all NSW businesses are experiencing “skills shortages”: Skills shortages are impacting on more than half of NSW businesses, with a survey revealing a critical mismatch between training and an organisation’s needs.

We did warn over and again about the combined dwelling and infrastructure bust, via Westpac: Construction work weakened further in the June quarter, with the result printing below expectations.

The gap between male and female earnings has been aired once again: The national gender pay gap now stands at 14 per cent, according to new data… On average, women working full-time earned $1484.80 while men working full-time earned $1726.30 a week, a difference of $241.50.

The ABS has released data on the value of construction work done for the June quarter of 2019, which registered another 3.8% seasonally-adjusted decline in total construction activity over the quarter and a 11.1% decrease over the year: The result badly missed analysts’ expectations of a 1.0% decline in construction activity over the quarter.

From Roy Morgan Research: The latest data from Roy Morgan has shown that a greater proportion of Australians (aged 14+) are now using Uber (22.9%) compared with taxis (21.8%).

Data from the Australian Housing & Urban Research Institute (AHURI) shows that the proportion of homeowners aged 55+ with a mortgage rose from 14% in 1987 to 28% in 2015.

The Morrison Government is looking to complete ‘free trade agreements’ (FTAs) with Indonesia, Hong Kong and the United Kingdom.

Australia’s pretend infrastructure boom to the moon!

When it comes to ‘Big Australia’ shills, you would be hard pressed to find a bigger rent-seeker than Dr Shane Geha, managing director of EG – “a leading real estate investment fund manager” – whose business profits directly from mass immigration.

Australia’s top teachers should be able to earn $80,000 a year more, and top school-leavers should receive $10,000-a-year scholarships if they take up teaching, according to a $1.6 billion Grattan Institute blueprint to boost teacher quality and student performance: Australia needs more high achievers in teaching.

The “worst drought on record” is ravaging New South Wales, which has led to more water restrictions being imposed across the state.

From Josh Recessionberg at The Australian: Josh Frydenberg will issue a rallying call to company bosses to ­invest more in new technologies — rather than returning excess cash to shareholders — in a bid to kickstart flagging productivity and boost wages by $3000 a year.

Via the marvelous George Theranou of UBS: Since the start of the year we expected GDP to drop, gradually raising unemployment, vs consensus & RBA still expect a flat/falling UR. This is the key driver of our dovish view of a peak in wages growth (also reflecting public sector wage caps).

Via bearish legend Albert Edwards of Societe General: …investors are perplexed.

No, really?

From the excellent Gareth Aird at CBA: Overview Output growth in Australia has been soft over the past year.

Via CBA: The August Flash PMITM data signalled a first reduction in output since March, with the decline centred on the service sector.

More from Kate Griffiths and Danielle Wood at the Grattan Institute.