Michaelia Cash must be replaced as minister for employment. Not for her breach of ministerial integrity, but because she is not doing what is supposed to be her day job — managing the employment portfolio for the Australian people.
Most workers around the world are enjoying increased work hours and higher wages as the current remarkable global boom is boosting production, exports, productivity, economic growth and company profits.
But Australia is an intriguing enigma for economists. It has a record trade surplus, had an excellent quarterly rise in gross domestic product (GDP) last week of 1.1% and, despite the negative third quarter, now has impressive annual GDP growth of 2.4%. Companies are now recording record revenues and profits. Yet jobs are being lost, wage rises are at record lows, and the gross debt blew out by $10.5 billion just in the last two weeks. How is this mathematically possible?
It was disclosed this week that Michaelia Cash had acquired another investment property — worth $1.4 million — in November, when she should have been protecting the 6512 men and 10,989 women thrown out of work that month. Or the 16,342 workers aged 15 to 24 who lost their jobs.
This is the fourth house in Cash’s portfolio. Or, at least, the fourth she has remembered to list on the parliamentary register.
This might not be an issue if her ministerial portfolio were also humming along. It isn’t. It is arguably the second worst-performing in the Turnbull government, after Treasury under Scott Morrison.
Worst employment outcomes ever
- The ratio of full-time jobs to total jobs fell in March 2016 — six months after Cash took on the job — to the lowest in Australia’s history, 68.6%. This tumbled further for the next two months, and then it fell below 68% for the first time last September, on her one-year anniversary. The January number is a new record low of 67.7%;
- Job participation for men fell in January to 70.0%, an all-time low; and
- Job participation for young people aged 15 to 19 fell to a record low in October of 52.1%. For the three months October to December, this remained below 52.3% – for the first time. It is now 52.9%.
Bad job outcomes, but not the worst
- The number of total jobless has been above 720,000 for the last three months. The previous time this occurred before the Abbott/Turnbull period was in 1998;
- Hours worked per person per month — the best indicator of real paid work — fell to 84.0 in April last year, the lowest level since March 1994. Hours worked have been below 85.5 for the past 11 months, the worst outcome since the early 1990;
- Job participation dropped to 64.4 last September and October, for the first time since 2006; and
- Women’s unemployment has been jammed at 5.8% for the last three months. It has been at that level or higher for 11 of Cash’s 16 months. Through Labor’s entire period this never exceeded 5.7%.
Comparisons with other countries
For most of the post-World War II period, Australia’s jobless rate has compared favourably with the rest of the world.
In 2013, Australia’s ranking among the 34 developed countries comprising the Organisation for Economic Cooperation and Development (OECD) was seventh, behind South Korea, Switzerland, Norway, Japan, Germany and Mexico. By the end of 2015, after two failed Joe Hockey budgets, Australia’s ranking had slipped to 13th — overtaken by Iceland, Denmark, New Zealand, the USA, Israel and the United Kingdom.
Now, Australia’s ranking is at an all-time low of 16th, in the bottom half of the OECD table. Australia is now also behind Hungary, Czech Republic and the Netherlands.
Similarly, Australia’s job participation has been in the OECD’s top 10 for decades — until 2014. By the end of 2015, Australia’s ranking had fallen to 11th. It is now 13th.
Visionary initiatives?
In the 16 months while Cash has been minister what have been her three most significant initiatives to increase employment? OK, just two then? Well, has there been one? Hmmm …
Her counterparts, meanwhile, have been proactive and are reaping the benefits. New Zealand’s Paul Goldsmith has been spruiking and funding tourism in Rotarua, Southland and elsewhere. He has promoted economic activity in Tairawhiti and other growth centres. The Kiwi jobless rate has fallen from 5.5% a year ago to 4.9% in the third quarter of last year and 5.2% in the fourth quarter.
Canada’s incoming Employment Minister Patricia Hajdu received detailed instructions from PM Justin Trudeau along with specific targets. Hajdu has already acted to better prepare unemployed youth for work. Youth jobless in Canada is on a downwards trajectory, as is unemployment generally.
Turnbull must find someone urgently to take on the ministry as a full-time job.
Michaelia Cash’s response showed she clearly agreed with the penalty rate decision … she most certainly didn’t disagree with it … or pronounce measures to preserve the pay of low paid workers … so she is in favour of significant cuts to low paid working Australians … but rather than explain her miserable and miserly view … all we got was a hysterical and meaningless rant about Bill Shorten … just pathetic…
Minister Cash represents Michaelia Cash. Expert at mouthing anti Labour cliches but I can’t say I have ever heard a constructive, positive policy announcement.
It’s a bit rich asking for visionary job creation initiatives from small government ideologues like Michaelia Cash. In her worldview they’re meant to come from business, not from government. Her job just to help reduce costs and regulations for businesses. If employment growth isn’t occurring, to her and her colleagues that just proves government taxes, compliance costs and regulations haven’t been cut enough.
Unfair on Cash, in that she has only been there 6 months.
Unfair on Cash, in that the Minister for Employment generally has bugger all effect on unemployment regardless of what happens, except when the government employs more public servants at half to a quarter of the costs of the consultants doing the same jobs.
Fair on Cash in that she and her government think that the way to solve youth unemployment is to reduce their pay and squeeze them off unemployment benefits.
Fair on Cash in that even if her government were of a mind to give a tinker’s cuss about unemployment, particularly for the young, she and her government would be useless at it.
Fair on Cash and her government that these statistics aren’t fake stats, or lies, they tell a story that anyone with kids knows well. There is nowhere for them to enter the employment market, and this government is doing its best to shut down what little opportunity they have, other than slave labour indentureships.
Fair on Crikey, Brekkie, for the most part.
Cash has been in the job nearly 18 months now. We have data for her first 16.
The stats are all true and correct. Pretty sure the hotlinks enable you to check.
Canada, New Zealand, the USA under Obama, Germany and other countries have energetic, pro-active employment ministers who intervene in policy matters. They all have declining unemployment.
Coincidence?
Isn’t this Liberals perfect scenario. Wasn’t this the ultimate aim of “work Choices”.High profits for the top end of town while the working classes fight for a job,any job at the lowest wages and minimum conditions the big boys are obliged to pay. Michaelia is the best in their eyes and the admiration no doubt grows every time she adds another investment property to her portfolio.