❓ A parliamentary question regarding youth unemployment and manufacturing performance in Western Australia. The Treasurer responds by highlighting positive trends in WA's manufacturing sector and contrasting them with national figures, while also criticising the opposition's claims about youth unemployment.
AnsweredQoN 114Legislative Assembly
QuestionView source ↗
YOUTH UNEMPLOYMENT AND MANUFACTURING
114. Mr A.P. JACOB to the Treasurer:
I acknowledge in the gallery today students from Mount Lawley
Senior High School in the member for Mount Lawley's electorate.
I refer to recent comments by the opposition that Western
Australia is not performing strongly in the areas of youth unemployment and
manufacturing. Can the Treasurer please outline to the house the facts about
Western Australia's economic performance in these areas?
114. Mr A.P. JACOB to the Treasurer:
I acknowledge in the gallery today students from Mount Lawley
Senior High School in the member for Mount Lawley's electorate.
I refer to recent comments by the opposition that Western
Australia is not performing strongly in the areas of youth unemployment and
manufacturing. Can the Treasurer please outline to the house the facts about
Western Australia's economic performance in these areas?
AnswerView source ↗
I thank the member for his question. On a day when another
massive subsidy is to be paid by the federal government to the Australian
automotive industry, it is timely to look at what is happening in
manufacturing, particularly in Western Australia. I might start with a quote
from the Deputy Governor of the Reserve Bank of Australia, Philip Lowe, who is
a fantastic economist. In a recent speech, he said —
Realistically, Australia cannot
hope to be a large-scale producer of relatively standardised, plain-vanilla,
manufactured goods for the world market. But what we can be is a supplier of
manufactured goods that build on our comparative advantages: our educated
workforce; our ability to design and manufacture specialised equipment; our
reputation for high-quality food; our research and development skills; and our
expertise in mining-related equipment.
What is happening in the manufacturing sector in Western
Australia is a very positive story. Since the start of the global financial
crisis, 99 400 manufacturing jobs were lost Australia-wide compared with a loss
of 85 200 manufacturing jobs during the recession of 1990–91. Almost as
many manufacturing jobs were lost over that period as were lost during our last
great recession. In the last decade, manufacturing employment across Australia
has declined by 7.7 per cent. I think I recently showed a graph, which I will
quickly show again, that highlights the 7.1 per cent decline over the last
decade up to 2011. At the same time, total employment in the manufacturing
sector in Western Australia grew by 1.1 per cent, bucking a really serious
national trend. In the year since that data came out, there has been a very
rapid acceleration in manufacturing job growth in WA. In the period from 2002
to 2012, Australia's percentage drop in manufacturing employment was
7.7 per cent. In WA there was an increase of 4.4 per cent. That is quite an
amazing acceleration of manufacturing employment in Western Australia.
According to the Australian Bureau of Statistics employment
data, WA's employment in manufacturing has increased from 90 000 in the
three months to November 2011 to 97 100 in the three months to February 2012.
In one quarter, WA has added 7 100 manufacturing jobs onto a base of 90 000.
That is absolutely outstanding. That very impressive manufacturing growth is
adding to employment growth in construction, resources and services. It means
that Western Australia's adjusted unemployment rate is nudging just
under four per cent seasonally adjusted. It is the lowest in Australia. It is
unbelievably impressive. When I went to university, I was taught that the
natural rate of unemployment should never dip under 5.6 per cent, and we are at
four per cent. So that is very impressive.
We had a question the other day from the shadow minister for local
jobs, who one would think would know a thing or two about employment
statistics. He asked a question of the Premier about unskilled foreign labour.
In the question he said that youth unemployment was at almost 20 per cent
across the state. A few heads on this side of the chamber turned around. A
supplementary question was then asked, in which the member said that nearly one
in four young Western Australians was out of a job. The first thing to note is
that youth unemployment increased from nearly 20 per cent to nearly 25 per cent
between the question and the supplementary question! That must be the biggest
increase in youth unemployment in a minute and a half in Australia's
history! That is absolutely remarkable. The second thing to note is that the actual
youth unemployment rate according to the recent ABS data for WA is 16.8 per
cent, the lowest of anywhere in Australia.
Mr M.P. Murray :
That's still unacceptable. Sixteen per cent of our kids are out of
work.
Dr
E. Constable interjected.
The
SPEAKER : Minister for Education!
As I have said to you before, member
for Collie–Preston, there are better ways to make —
Mr
M.P. Murray interjected.
The
SPEAKER : Member for Collie–Preston, I was not going to
formally call you to order, but I formally call you to order for the first time
for continuing to talk. If people wish to continue to talk while I am on my
feet, I might actually ask them to leave this place.
Mr C.C. PORTER :
The only other place with a lower rate of youth unemployment is the Australian
Capital Territory, which the Australian Bureau of Statistics described as
subject to such great sampling variability as to be too high for practical
comparison. The ACT does not count in this and many other things.
WA has the lowest rate of unemployment of any state. But what
is remarkable is that the shadow minister for local jobs does not know what the
rate of unemployment is. He researches the question and bids with his leader to
get the question up, but the youth unemployment rate changes twice in the
question and is wrong both times! That is absolutely remarkable.
Several members interjected.
Mr C.C. PORTER :
Members opposite do not like it. If a member uses a base figure of 16.8 per
cent for youth unemployment—nearly 17 per cent—and says that it
is nearly 25 per cent, he is elevating the rate of youth unemployment off the
actual base by 50 per cent. It is like my trying out for the Wildcats and
saying I am nine feet tall when I am six feet tall! No, I am not; I am nine
feet tall! Look at me—bigger than Yao Ming! I am as tall as two members
over there glued end to end!
Several members interjected.
The SPEAKER : Thank
you, members!
Mr C.C. PORTER :
Six foot one inch—nine foot with the afro!
We have a shadow minister for jobs who knows nothing about
the basics of the labour market.
massive subsidy is to be paid by the federal government to the Australian
automotive industry, it is timely to look at what is happening in
manufacturing, particularly in Western Australia. I might start with a quote
from the Deputy Governor of the Reserve Bank of Australia, Philip Lowe, who is
a fantastic economist. In a recent speech, he said —
Realistically, Australia cannot
hope to be a large-scale producer of relatively standardised, plain-vanilla,
manufactured goods for the world market. But what we can be is a supplier of
manufactured goods that build on our comparative advantages: our educated
workforce; our ability to design and manufacture specialised equipment; our
reputation for high-quality food; our research and development skills; and our
expertise in mining-related equipment.
What is happening in the manufacturing sector in Western
Australia is a very positive story. Since the start of the global financial
crisis, 99 400 manufacturing jobs were lost Australia-wide compared with a loss
of 85 200 manufacturing jobs during the recession of 1990–91. Almost as
many manufacturing jobs were lost over that period as were lost during our last
great recession. In the last decade, manufacturing employment across Australia
has declined by 7.7 per cent. I think I recently showed a graph, which I will
quickly show again, that highlights the 7.1 per cent decline over the last
decade up to 2011. At the same time, total employment in the manufacturing
sector in Western Australia grew by 1.1 per cent, bucking a really serious
national trend. In the year since that data came out, there has been a very
rapid acceleration in manufacturing job growth in WA. In the period from 2002
to 2012, Australia's percentage drop in manufacturing employment was
7.7 per cent. In WA there was an increase of 4.4 per cent. That is quite an
amazing acceleration of manufacturing employment in Western Australia.
According to the Australian Bureau of Statistics employment
data, WA's employment in manufacturing has increased from 90 000 in the
three months to November 2011 to 97 100 in the three months to February 2012.
In one quarter, WA has added 7 100 manufacturing jobs onto a base of 90 000.
That is absolutely outstanding. That very impressive manufacturing growth is
adding to employment growth in construction, resources and services. It means
that Western Australia's adjusted unemployment rate is nudging just
under four per cent seasonally adjusted. It is the lowest in Australia. It is
unbelievably impressive. When I went to university, I was taught that the
natural rate of unemployment should never dip under 5.6 per cent, and we are at
four per cent. So that is very impressive.
We had a question the other day from the shadow minister for local
jobs, who one would think would know a thing or two about employment
statistics. He asked a question of the Premier about unskilled foreign labour.
In the question he said that youth unemployment was at almost 20 per cent
across the state. A few heads on this side of the chamber turned around. A
supplementary question was then asked, in which the member said that nearly one
in four young Western Australians was out of a job. The first thing to note is
that youth unemployment increased from nearly 20 per cent to nearly 25 per cent
between the question and the supplementary question! That must be the biggest
increase in youth unemployment in a minute and a half in Australia's
history! That is absolutely remarkable. The second thing to note is that the actual
youth unemployment rate according to the recent ABS data for WA is 16.8 per
cent, the lowest of anywhere in Australia.
Mr M.P. Murray :
That's still unacceptable. Sixteen per cent of our kids are out of
work.
Dr
E. Constable interjected.
The
SPEAKER : Minister for Education!
As I have said to you before, member
for Collie–Preston, there are better ways to make —
Mr
M.P. Murray interjected.
The
SPEAKER : Member for Collie–Preston, I was not going to
formally call you to order, but I formally call you to order for the first time
for continuing to talk. If people wish to continue to talk while I am on my
feet, I might actually ask them to leave this place.
Mr C.C. PORTER :
The only other place with a lower rate of youth unemployment is the Australian
Capital Territory, which the Australian Bureau of Statistics described as
subject to such great sampling variability as to be too high for practical
comparison. The ACT does not count in this and many other things.
WA has the lowest rate of unemployment of any state. But what
is remarkable is that the shadow minister for local jobs does not know what the
rate of unemployment is. He researches the question and bids with his leader to
get the question up, but the youth unemployment rate changes twice in the
question and is wrong both times! That is absolutely remarkable.
Several members interjected.
Mr C.C. PORTER :
Members opposite do not like it. If a member uses a base figure of 16.8 per
cent for youth unemployment—nearly 17 per cent—and says that it
is nearly 25 per cent, he is elevating the rate of youth unemployment off the
actual base by 50 per cent. It is like my trying out for the Wildcats and
saying I am nine feet tall when I am six feet tall! No, I am not; I am nine
feet tall! Look at me—bigger than Yao Ming! I am as tall as two members
over there glued end to end!
Several members interjected.
The SPEAKER : Thank
you, members!
Mr C.C. PORTER :
Six foot one inch—nine foot with the afro!
We have a shadow minister for jobs who knows nothing about
the basics of the labour market.
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