Posted 28-04-2009
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by Andrew Connery

How do we create more jobs?

Thinking about the prospects of long term jobs growth is commendable but creating new positions now is the real and more pressing issue

Most people recognise and accept the major challenge for all levels of government in the months ahead will be to stem the flow of job losses by judiciously supporting ‘at risk’ segments of the community, however the less obvious opportunity, to identify entirely new positions that can be filled immediately, should not be overlooked.

Having said that, clearly these new positions must be real in the sense that they will ultimately lead to on-going sustainable work and they are not to be seen as pure acts of generosity to organisations who are seeking to make a profit from their operations.

It is well known that the small business sector provides the bulk of jobs in our economy but historically most government employment assistance programs are targeted at the perceived less risky larger organisations who, as we all know, are the ones currently laying off the most staff.

The number of people employed by large organisations has in fact been steadily decreasing over many years and despairingly (but understandably in present conditions) the share market rewards each announced reduction in staff numbers or layoffs by bumping up share prices, thus adding to the downward impetus.
 
To inject much needed assistance into the struggling and largely unsupported small business sector will require a paradigm shift in government thinking. What’s more, an array of new ideas and fresh criteria will have to be embraced by our leaders and policy makers to make it actually happen.

Based on personal experience the incentives required may involve a total subsidy of direct labour costs for up to two years. Now, while that time frame may sound excessive, one must acknowledge the cost of employing additional staff involves many other indirect labour ‘add-ons’ not to mention numerous related factors such as office and desk space, insurance, vehicles, phones, training, PCs and special software etc.

The fact is that it involves a considerable amount of effort and goodwill on the part of management to take on any extra staff in the middle of a recession and providing the prospects for on-going employment in an industry that has been identified as either emerging or green are reasonable, the federal and state governments should carefully consider such opportunities on their individual merits.

At a time when all employers are looking for ways to reduce their operating costs the decision to add any expense, no matter how little, is often avoided.

To facilitate this initiative it is suggested that bodies such as our local business chamber or labour council should start a register which lists all complying companies prepared to take on staff, the type and number of jobs involved and the actual amount of grant required to create each individual job.

To their credit both federal and state governments have been seeking input from the wider electorate and interested parties, and it is suggested this proposal could become an integral part of a locally based ‘jobs initiative’.

Given our governments have been actively seeking ideas, this initiative should be seen positively as a concrete example of what locals can do to help themselves and present the relevant bodies with a well considered and politically acceptable way forward that can be triggered without delay.

We live in an era of unprecedented challenges and the time has come for concrete action by all levels of the community. The publishers of this e-magazine pledge to actively support any local organisations who wish to establish or help create a ‘Jobs Register’. 

To discuss or just show your interest please contact me: andrewc@youronlinecommunity.com.au

 

Andrew Connery is the publisher of this e-magazine and (anyone will tell you) loves to share his views on the world in general. You can phone Andrew on 9516 2000/(02) 4254 0200 or email him on andrewc@youronlinecommunity.com.au - he'd appreciate hearing your opinion on anything raised in this column.

 

Comments

Dear Andrew There are a number of ways to create jobs, Eg. We stopped building Industrial and Rural Buildings late last year due to the increases in steel prices. Structural and mesh, colorbond and black steel. If the likes of Billiton (sic) and Lysaughts (sic) reduced their pie in the sky over priced stockpiles then possibly others like ourselves would start building again.Therefore Billiton (sic) should look after their own before selling China steel at discount prices and severly wounding their loyal customers in Aust. Maybe if we start importing steel into Australia Billiton (sic) management may experience the same hold onto your jobs as the poor old Billiton worker on the floor.
by Ian Fulford
28 Apr 09 20:57

Job creation in recession times is historical difficult. This recession, is different due to the contraction of the economy due to greed and greed alone. When prices and corporate salaries return to a more realistic level, growth shall return with a more realistic cost structure. IT is on its way down having reached a peak about two years ago, which would indicate that jobs will move from tertiary back to secondary industry. Given that our manufacturing industry is under threat of extinction, one woul hope that encouragement from all sources leads to job creation in primary and secondary industry, yet this will not occur until late 2009 at the earliest. On a closer to home level, the Illawarra and Shellharbour areas will take longer due to the lack of Council and uncertainty in the Buliding and Construction industry (thanks Beth, Frank, et al.) Stimulus at present should be toward the retail and secondary industry to get money moving again. Rudd's incentive packages are band-aid measures, yet in the right direction. The main areas requiring encouragement are Health, Education and Old Age care which are sadly being neglected at present.
by Sean Cafferty
29 Apr 09 09:07

A few factors affect the Illawarra's opportunity to create jobs. Firstly, the current economic climate indicates further reductions to job levels and higher unemployment. During a recession, the economy contracts creating a steadying of value-driven monetary circulation. This recession has been caused by one thing - greed. Unrealistic corporate salaries, corporation purchasing houses by artificially inflating house values. Since the downfall of the US financial sector, the economy contracts, values become more realistic. The downfall of this is that the bottom of the pecking order are the ones who are affected first - job shedding, mortgage problems, etc. The fact that Woll and Shell Councils were sacked causes uncertainty and discourages and slows the Building and Construction industry, which, as a secondary industry is very important in the Illawarra. The best way to ebcourage job growth or stimulate job availability is to encourage secondary industry, especially in the Illawarra. This means stimulating such industries as Health, Education and retail. Unfortuantely, these are not a priority at present and I cannot see the local economy improving until at least late 2009. The best advice I can give is to batten down the hatches and weather the storm.
by Sean Cafferty
29 Apr 09 09:21

Ian does not say the name of his company, but if what he says is right, then this is something that should be looked into. Charity begins at home - not in China!
by Fergie
29 Apr 09 12:31

I'd like to start a business either mowing lawns or web design. I am already studying at web development tafe. But how do you start a business with debts and no assets. I have natural skills and talents and no qualifications. I have qualifications and no experience. What can you do?
by Kevin
30 Apr 09 18:37

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