SA experiencing ‘people power’ boom according to Deloitte Access Economics Business Outlook
SA is in the middle of a “people power” boom, according to a respected economics firm that warns the brain drain may be rebooted unless we can find work for everyone that wants it.
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South Australia is in the middle of a “people power” boom as near-record numbers look for work, Deloitte Access Economics has found.
The forecaster also warns SA’s brain drain will be rebooted unless jobs grow just as fast.
Deloitte today releases its latest Business Outlook report, which predicts a decades-long slide in SA’s share of both the national population and economy to continue until 2023.
The state has recorded the nation’s highest jobless rate for the last two months running, and the figure now stands at 7.3 per cent, but Deloitte insists SA is “no crash and burn” story as there are “solid fundamentals” over the medium-term.
“There’s been much focus on a recent lift in South Australia’s unemployment rate,” the report states.
“But it’s better seen as the gap between two good news trends — a rising number of jobs, and a rising willingness to work.
“Overall job growth remains pretty solid, but it has been overtaken by the increased willingness to remain in work by those aged 55.
“Although that combination has seen unemployment lift, it’s better understood as the fastest increase in the state’s workforce since the mid-1980s.
“In a state that’s long been in search of a surge in people power, one has been occurring under its nose.”
The report warns that failing to close that gap creates a “rising risk that youth will leave for greener pastures elsewhere in Australia”.
Australia Bureau of Statistics figures show a recent slowdown in the number of South Australians fleeing across the border. The number spiked in 2016 to 7212, but has declined to 5151 last year.
Deloitte warns that SA has fragile business investment, which is “no longer a night in shining armour”.
It blames that on global forces which are impacting investment in key industries.
The report finds that SA’s international student numbers are picking up strongly, and that better rainfall should boost the value of winter crops.
Treasurer Rob Lucas said the report “paints a positive picture of SA’s economy”, particularly its export and commercial construction sectors.
He said nearly 15,000 more South Australians had jobs since Premier Steven Marshall’s election last year and nearly 10,000 were full-time.
“About 1000 jobs have been created each month under the Marshall Government, which is nearly double the jobs growth rate under the former Labor government,” Mr Lucas said. “We are committed to further increasing the jobs our economy is creating to match the growing number of South Australians willing to work.”
Mr Lucas pointed to opportunities on the horizon flowing from a $90 billion defence ship building program and spin-off sectors in space, cyber and creative industries. The Government is also loading up for a $12 billion infrastructure build.
Opposition treasury spokesman Stephen Mullighan said the report made “sobering reading”, as forecasts for both economic and employment growth were well below those in the State Budget.
“Also concerning is the drop off in Government spending and engineering work at the exact time our economy needs more stimulus,” he said.
“Steven Marshall needs to stop raising taxes and fast-track delayed infrastructure spending to get our state moving again.”