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How bad is our economy really? Australia v Spain

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The World According to Shane: How bad is our economy really? Australia v Spain

Monday, 29 October 2012

How bad is our economy really? Australia v Spain So we’re moaning and groaning about how bad we have it here in Australia at the moment, and all thinking a change in government might fix it, but spare a thought for the people of Spain.

According to Wikipedia, we’re roughly the same size economy at about $1.5 trillion. They’re bigger than us, with a population a bit over double our size at 47 million.

This week, unemployment in Spain hit 25%. Thats one in four people able and looking to work, without a job.

In Australia, unemployment is at just over 5%, or about one in 20.

Spanish Youth Unemployment (16 - 24 year olds), it now above 50%. In Australia, our official number is closer to 12%. Even in remote regions where youth unemployment is notoriously high, we are still under 50%

The labour force in Australia is about 12.5 million people or 55% of the population.

In Spain its about 23 million, or 50% of the population, which means not only is their unemployment rate much higher, their participation rate is also lower. This means even more people without jobs (though those people are not looking for work either).

One in every 10 households in Spain, now has no one working. Can you even think of 10 households in your network with NO ONE working?

Spain needs the economy to grow by more than 1.5% just to create new jobs, but the current outlook with spending cuts, tax hikes and austerity measures - a contraction of 0.5%. That most likely means even more jobs to go. And there’s not sign it will be any better in 2013/14

Again by contrast, treasury forecast are for the Australian economy to grow in the next 12 months, which even with some small increases to productivity, should see our employment rate stay level, or reduce slightly.

And by the way - worried your house price hasn’t increased in the past year or two. In Spain, they’re still waiting for the market to bottom out. That is, for property prices to “stop falling”.

I am openly critical of Wayne Swan and the Labour Government. I even question if Treasurer Swans “economic stimulus’ had the impact on the economy he so regularly suggests it did. But the one thing that I do agree with him on, is that we are doing remarkably better that most of our peers. Especially Spain.

                                           Australia                       Spain
Economy                           $1.486 trillion (2011)      $1.479 trillion (2011)
Population                         22+ million                     47+ million
Labour Force                    12.05 million (55%)        23.1 million (50%)
Unemployment                 5.3%                               25%
Youth Unemployment      11.7%                             51.1%                         


The World According to Shane - perhaps its not so bad here after all. Stop complaining and get on with continuing to make Australia the best country in the world to live and work. If you still want to complain - perhaps you should consider moving somewhere warm - like Spain. Good luck with the job hunting.

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Check out my other blogs at www.shaneridley.com.au

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Comments

Ryan Myler

Director/ Financial Planner

Optimas Financial Planning

Shane has provided me with invaluable advice, being that I am in start up phase with my business. His knowledge of business in general, along with his strong understanding of the current trend toward social media and it's influence, have provided me with insights on how to grow my company. I would strongly recommend Shane in a business mentoring role due to his depth knowledge and broad experience, along with his superior story telling ability to make the complex simple.


June 25, 2012

Indiana Forrest-Bisley

Business Development Manager Australian Exhibitions & Conferences

Shane exhibited with us at the 2012 Safety in Action trade show - Melbourne. I found him to be extremely professional and furthermore his pre employment training services were a hit at the show. We will see Shane return to the safety show Perth (August 7-9). If you're in need of ANY type of pre employment training
I would strongly reccommend OTrain to anyone within HR."


June 29, 2012