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Australia may loose 1 million service sector jobs

Steel News - Published on Fri, 12 Oct 2012

A study from Australia’s National Institute of Economic and Industry Research, or NIEIR, found that the service industry is currently outsourcing more than 20,000 jobs overseas every year. Without government intervention, up to a million Australian service sector jobs could move offshore during the next three decades.

Professional, administrative and financial services jobs were the hardest hit. The less specialized jobs are moving to cheaper locations like India, while more specialized skills are being taken on by offshore workers in fully developed countries like the United Kingdom.

This would seem a surprising turn of events for economically robust Australia, except that it was predicted with startling specificity back in 2008. That report, also from NIEIR, posed a question: “Without Plan B -- a strong services sector -- what is Australia’s future should China stumble?” The study authors estimated that annual outsourced jobs would reach -- you guessed it -- 20,000 by 2012.

What NIEIR saw early on was a dangerous dependency on Chinese growth; they argued that policy changes were in order, but their warning went largely unacknowledged. Now that China’s economic growth appears to have leveled off, analysts worry it may be too late to stop Australia’s slow drain of service sector positions.

At the time of NIEIR’s 2008 report, it would have been easy to ignore such dire warnings. Australia was enjoying an economic boom, even while other world economies were tilting toward recession.

China’s rapid growth, and the accompanying rise in demand for resources, buoyed Australia’s economy during those salad days. In particular, China’s appetite for coal and iron ore -- which are abundant Down Under -- helped the People’s Republic to become Australia’s largest trading partner.

Source - Reuters

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Posted By : admin on Fri, 12 Oct 2012
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