Is the RBA now saying that the "skills shortage" is not a critical issue
RBA Assistant Governor Malcolm Edey in 2005 ( Howard Era):
I commented at another event last week that the broader observation that supply constraints are becoming more important shouldn't strike people as all that surprising...The severity of the current skills shortage is captured by some of the business surveys which report the difficulty of finding suitable labour now is as high as it's been in the last two decades...
Against the background of capacity pressures in labour and product markets, and rising world commodity prices, it's not surprising to have seen broader price pressures emerging recently. Our quarterly statement noted that upstream price pressures had picked up during 2004
(http://www.rba.gov.au/Speeches/2005/sp_ag_030305.html)
Malcolm Edey on 19 February 2008 ( Rudd Era)
Addressing a group of business leaders in Sydney yesterday, a Reserve Bank assistant governor, Malcolm Edey, said labour markets had become more flexible in the past 20 years, which should continue to sustain low unemployment without necessarily increasing inflation.
"We should expect to see that low levels of unemployment can still be sustained without generating significant lifts in wage inflation," Dr Edey said.
A survey released yesterday by the Melbourne Institute found wages had only risen by 3 per cent in the year to February, tracking the general rate of inflation.
(http://www.smh.com.au/news/national/bank-joins-debate-on-jobless-rate/2008/02/19/1203190824103.html)
NOTE: This writer is aware and fully appreciates the meaning of the terms "can be interpreted in many different ways", "taken out of context", "depending on how one looks at it" etc etc.
Writer suggests that it might be a better idea at this point to start thinking what the consequences of an increased supply of skilled workers given the current environment might be. Here readers should recall some other new terms eg "education revolution", and its consequences , as explained by Treasurer Wayne Swan:
Australian Treasurer Wayne Swan promises to address a skills shortage in the country.
"At the core of the program we took to the Australian people are schemes to address the skills shortage and a whole series of plans to deal with infrastructure bottlenecks," said Swan. "So this government will expand the skills base in the economy."
(http://www.voanews.com/english/2008-02-18-voa8.cfm)
Readers should not need reminding that when supply increases, wages will fall.When labour supply is inceased at the top or near top of a business cycle, higher unemployment will follow.
I commented at another event last week that the broader observation that supply constraints are becoming more important shouldn't strike people as all that surprising...The severity of the current skills shortage is captured by some of the business surveys which report the difficulty of finding suitable labour now is as high as it's been in the last two decades...
Against the background of capacity pressures in labour and product markets, and rising world commodity prices, it's not surprising to have seen broader price pressures emerging recently. Our quarterly statement noted that upstream price pressures had picked up during 2004
(http://www.rba.gov.au/Speeches/2005/sp_ag_030305.html)
Malcolm Edey on 19 February 2008 ( Rudd Era)
Addressing a group of business leaders in Sydney yesterday, a Reserve Bank assistant governor, Malcolm Edey, said labour markets had become more flexible in the past 20 years, which should continue to sustain low unemployment without necessarily increasing inflation.
"We should expect to see that low levels of unemployment can still be sustained without generating significant lifts in wage inflation," Dr Edey said.
A survey released yesterday by the Melbourne Institute found wages had only risen by 3 per cent in the year to February, tracking the general rate of inflation.
(http://www.smh.com.au/news/national/bank-joins-debate-on-jobless-rate/2008/02/19/1203190824103.html)
NOTE: This writer is aware and fully appreciates the meaning of the terms "can be interpreted in many different ways", "taken out of context", "depending on how one looks at it" etc etc.
Writer suggests that it might be a better idea at this point to start thinking what the consequences of an increased supply of skilled workers given the current environment might be. Here readers should recall some other new terms eg "education revolution", and its consequences , as explained by Treasurer Wayne Swan:
Australian Treasurer Wayne Swan promises to address a skills shortage in the country.
"At the core of the program we took to the Australian people are schemes to address the skills shortage and a whole series of plans to deal with infrastructure bottlenecks," said Swan. "So this government will expand the skills base in the economy."
(http://www.voanews.com/english/2008-02-18-voa8.cfm)
Readers should not need reminding that when supply increases, wages will fall.When labour supply is inceased at the top or near top of a business cycle, higher unemployment will follow.
Comments
Post a Comment