Senate debates

Thursday, 7 September 2006

Questions without Notice

Employment

2:35 pm

Photo of Mitch FifieldMitch Fifield (Victoria, Liberal Party) Share this | | Hansard source

My question is to the Minister for Finance and Administration representing the Treasurer. Will the minister update the Senate on the outcomes of today’s employment data from the Australian Bureau of Statistics? What do these statistics say about the strength of the Australian labour market and the impacts of the government’s Work Choices legislation? Is the minister aware of any alternative approaches?

Photo of Nick MinchinNick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | | Hansard source

I thank Senator Fifield for that question. I am indeed pleased to have the opportunity to confirm that today’s employment statistics show that in the month of August some 23,400 jobs were created in the Australian economy. While that figure does include the impact of the census related employment of 7,000 people, it is nevertheless a very good outcome for Australia. The unemployment rate remains again below five per cent at 4.9 per cent. It did rise by 0.1 per cent, but that is because we now have a record participation rate in Australia of 65.1 per cent. Since the commencement of the Work Choices legislation in April, we have seen 168,000 new jobs created if you net out those attributable to the census in August. This completely puts the lie to Labor’s claims that Work Choices would lead to a spate of mass sackings with the removal of unfair dismissal laws. It simply has not happened. Not only have employers put on substantially more staff but Australians are coming into the workforce in unprecedented numbers because of their confidence in the economy and our strong job market.

Today’s results and those of the past four months do vindicate the policies enacted by this government. Our clear policy is to create jobs through a flexible labour market, workplace agreements and the removal of unfair dismissal laws for small and medium businesses. Our policy is to encourage workforce participation through welfare reforms and income tax cuts, including this week’s confirmation of the removal of tax on super for those retiring after the age of 60. We are now seeing, as I said, the highest ever participation rate in the Australian workforce. Our policy is to see rising real wages through productivity, which was backed up by the recent wage data from the national accounts yesterday.

I was asked: ‘Where does the Labor Party stand on these things?’ They have announced they are going to tear up the Work Choices legislation. They are going to bring back a highly regulated labour market. They want to bring back unfair dismissal laws for small businesses, which, we know, discourage those businesses from hiring new staff. They want to scrap our efforts to better target welfare, which they vehemently opposed from day one, just as they always opposed our Work for the Dole scheme. They still have not announced what their position is on our new superannuation arrangements.

What is clear out of all this is that if you do want low unemployment you have to have a flexible labour market. Under our predecessors the labour market was highly centralised, regulated and union dominated. And what did we have? An unemployment rate peaking at 11 per cent—more than double the current unemployment rate.

Interestingly, if you go to France or Germany or Italy today, you will see a tight labour market just like we used to have; you will also see unemployment rates like we used to have—closer to 10 per cent in those countries. But, thanks to us, we are part of the low unemployment hub that includes the United States, New Zealand and Great Britain. The latter two countries, of course, have Labour governments which do understand the need for free and flexible labour markets. So I think today’s job figures really should be a reality check for the Australian Labor Party. We look forward to them developing some 21st century policies which are actually aimed at creating real jobs and not just at looking after their own jobs.