Michael Pascoe writes:
The ANZ job ads survey painted a bleak picture of where the NSW
economy is heading – but that might have pleased the Reserve Bank.
While the national number of employment ads
in major newspapers fell 5% last month, NSW was down 10%. (Tasmania plunged
nearly 15% – but that was before the Beaconsfield media
invasion.)
Throw in other statistics that show house
prices are still falling and RBA Governor Ian Macfarlane should be a happy man.
We should remember the Guv is on record recommending people leave Sydney anyway.
The RBA solution for our economy that’s
running hot in a couple of states and cold in others is for market forces to
work their magic – higher unemployment and a declining outlook in Sin City should
force labour to move to the boom states, easing inflationary pressures there.
The political problem for Canberra though
(and never mind the state government) is that there are plenty of seats in the
mortgage belt that will feel the pain of reduced opportunity and higher
interest rates. The voters are more likely to blame the government than the
RBA. Besides, the Guv’s retiring in September anyway.
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