SA Economy

[Ben]

From a ground level point of view I think there is a great disparity between the CBD and other (regional and outer metro) areas of SA. In recent months I have seen around my office nearly all of the retail spaces being snapped up and signs going up "leased" "Under offer". The CBD appears to be as good as it has been in the 10 years I've been working in it. I guess its the outer metro regional areas hit by manufacturing where majority of losses are being felt and for a lot of people out of sight out of mind.

[Waewick]

From a ground level point of view I think there is a great disparity between the CBD and other (regional and outer metro) areas of SA. In recent months I have seen around my office nearly all of the retail spaces being snapped up and signs going up "leased" "Under offer". The CBD appears to be as good as it has been in the 10 years I've been working in it. I guess its the outer metro regional areas hit by manufacturing where majority of losses are being felt and for a lot of people out of sight out of mind.

talking to some friends who work for charities, they estimate the North unemployment rate to be in the 20% region, with Youth unemployment significantly higher.

[Jaymz]

From a ground level point of view I think there is a great disparity between the CBD and other (regional and outer metro) areas of SA. In recent months I have seen around my office nearly all of the retail spaces being snapped up and signs going up "leased" "Under offer". The CBD appears to be as good as it has been in the 10 years I've been working in it. I guess its the outer metro regional areas hit by manufacturing where majority of losses are being felt and for a lot of people out of sight out of mind.

Yes, that is very true. This state govt is very CBD centric, there is no doubt that it's more vibrant than it's ever been.
........and luckily for me it's where I live. Although having said that, I work on a remote mine site in SA, and the past
18 months has been very bleak. There have been 2 rounds of redundancies, and in between a few positions here and there
lost.

[Wayno]

From news.com.au

South Australia’s flailing economy is leaving behind a generation of disenchanted youth

IT’S no secret that South Australia is struggling.

The southern state has the highest rate of unemployment in the country and a string of job losses in the manufacturing industry means the worst of the pain is likely still ahead.

While much of the economic discussion on the east coast is dominated by rising house prices in the major cities, spare a thought for those in Adelaide who are really feeling the pinch. And that pinch is being felt disproportionately by young people desperately trying to get a foothold in the job market.

For 19-year-old Daniel Meredith, things have got so dire that last week he turned to an Adelaide forum on social media site reddit with the hope someone in the city might be able to help in his ongoing job search.

“My job hunt has become so desperate I’ve come here,” he wrote in the post. “Does ANYONE know ANYWHERE that’s hiring?”

He admits it was a long shot, but desperate times call for desperate measures.

“Desperation, frustration, initiative, whatever you want to call it, is what drove me to seek help on reddit,” he told news.com.au

“All other mediums had been exhausted so I thought perhaps if someone knew somewhere that was actively hiring right now ... I might have a chance to prove myself.”
He sometimes has promotional work on offer.

Daniel graduated from Cabra Dominican College in 2013 with an Australian Tertiary Admission Rank in the high 90s. He is studying Podiatry at The University of South Australia but has been looking for a job since finishing year 12. Apart from a stint working at an e-recycling plant immediately after finishing school, he gets occasional work with a neighbour’s promotion company. But jobs can be months apart and there has been none on offer for more than two months.

“I currently have no savings to speak of or disposable income. My income is irregular and insufficient to pay for Uni fees and textbooks,” he said.

As he expected, his call-out on reddit didn’t prove fruitful. No jobs, just words of encouragement.

“Good luck, mate. Adelaide is dead cold,” wrote one respondent. “Good luck mate. It’s pretty dang rough ... Grit your teeth,” wrote another.

The 19-year-old said he was not alone in his frustrations over the sheer lack of opportunities currently on offer in the state and said his situation was sadly typical of plenty of people his age.

“Most of my friends and family are either unemployed, employed through family or friends’ connections or employed in the same dead-end job they have been in since they were 14,” he said.

But his lack of success in finding work is certainly not for a lack of trying.

“First I began taking resumes in, in person to these workplaces. I had a very low success rate, in most cases getting turned round and told to apply online or never hearing a reply. Most small businesses I tried said not to bother.”

So he tried a different tact.

“I have been actively applying in hospitality, retail, customer service and other similar, low qualified industries. I rarely hear back, if I do, it’s an automated email telling me sorry you missed the job.

He said all he wanted was an interview to prove himself, but that goal remained an elusive one.

“It feels like the same opportunities my generation’s parents and grandparents had do not exist and it is very frustrating to be told hypocritically we are simply too entitled and not working hard enough,” he said.

SA UNEMPLOYMENT AT ‘CRISIS’ LEVELS

South Australia’s unemployment rate was calculated at 7.7 per cent for the month of September, down slightly from 7.9 per cent in August. That may sound like it’s going in the right direction but the jobs situation is precarious at best with the manufacturing industry struggling.

The finals stages in the closure of Holden’s Elizabeth plant, as well as massive lay-offs at energy giants Santos and Alinta, and job cuts at the Whyalla site of embattled steelworks company Arrium means the unemployment figure is likely to rise.

Dr Steven Barrett, from the University of Adelaide’s School of Economics, told Adelaide’s InDaily last week that the true number of people out of work in South Australia was reminiscent of the 1990-91 recession. Something he called a “scary” state of affairs.

He believes the real unemployment figure is closer to 10 per cent but even that is a serious understatement as the way the Australian Bureau of Statistics calculates the figure produces a very conservative number.

“If we calculated properly we should be seeing 20 per cent, not 10 per cent,” he said.

According to the ABS, the state’s under-utilisation rate now sits at 17 per cent, with 19 per cent of women in South Australia and 14.7 of men who have previously been looking for work, giving up or working much fewer hours than they would like.

“The discouraged worker effect seems to be outweighing the worker effect in South Australia and as a result the participation rate in South Australia is falling,” Dr Barrett said.

SA Employment Minister Gail Gago said the latest figures represented an ageing workforce and a transition period from a reliance on old economies such as manufacturing to newer industries.

“We recognise the really difficult road ahead for many workers as we transition from the old economy to the new economy,” she told the ABC last week.

No one understands the current hardship more than those witnessing it each day.

Just yesterday another reddit user posted a message offering support on the same Adelaide subreddit where Daniel Meredith sought help.

“Hi all, so since the unemployment rate doesn’t seem to be getting better and people are struggling, I wanted to offer my help to anyone who might need it,” they wrote.

“Happy to offer pantry items, toiletries, clothes, essentials to help anyone who needs it.”

“As someone who is unemployed but is getting by because my SO (significant other) supports us, I think that’s a really wonderful idea,” one user replied.

As for Mr Meredith, he said his outlook remained grim.

“Nor myself or my social circle have had much success finding employment and it appears through reddit and other media outlets and news services that the feeling is mutual across the state,” he said.

[Jaymz]

Yep I agree. With all the job losses that have been announced of the past 2 years, I find it really hard to believe that
the unemployment rate is only 7.7%. The only positive thing I can find is, S.A's population growth is still holding up at
normal levels (0.9%), so there must be enough new jobs being created to absorb some of this. Otherwse I would've thought
our official rate would've been well above 10% by now.

[Will]

Although part of our economic malaise is attributed to international factors, our local political leaders must take some of the blame. The Weatherill government is safe and bland. It lacks the vigour and energy required to lead the state. The opposition is worse. It has no ideas and only serves to say no. We need politicians whom can put aside their quest to remain in office and govern for the benefit of the state. This means, taking some hard decisions.

Decisions like...

-liberalising shopping hours
-getting rid of the airport curfew
-forcing council amalgamations
-getting rid of the upper house in parliament
-closing country hospitals that are closely located - i.e. Tailem Bend Hospital
-scrapping the monopoly that Skycity have on casinos in this state
-following the Dutch model and allowing the sale of cannabis in certain government controlled stores

[Goodsy]

-following the Dutch model and allowing the sale of cannabis in certain government controlled stores

It just needs to be fully legalized and taxed, along with hemp.

[rev]

...make SA as pro business friendly as possible.

...take advantage of the record low interest rates, and build up our city's and states infrastructure. Now, when interest rates are low, not in 10 years or more time when rates will be back up.



And unemployment is said to be beyond 20%. The real figure that is. Apparently it's worse then the recession in the early 1990s.

[jk1237]

Yep I agree. With all the job losses that have been announced of the past 2 years, I find it really hard to believe that
the unemployment rate is only 7.7%. The only positive thing I can find is, S.A's population growth is still holding up at
normal levels (0.9%), so there must be enough new jobs being created to absorb some of this. Otherwse I would've thought
our official rate would've been well above 10% by now.

There are always new jobs created in SA, however its not newsworthy to newspapers so its never reported

[Vee]

Climate change, renewable energy, low carbon transition, innovation and job creation are in high focus.

Timely release:
State Govt plan: Low carbon investment plan for SA. (Dec 2015)

... want to achieve $10 billion of investment in low carbon energy generation by 2025 and we want 50 per cent of our electricity production to be by renewable energy by 2025.

Check out the overall strategy, specific areas of interest or any of the maps, charts, statistics, infographics, photos and 14 case studies.
Renewables SA:
http://www.renewablessa.sa.gov.au/files ... b-copy.pdf

Would like to see the focus on electric vehicles (and charging) ramped up in the future.

[rev]

Belgian tycoon wants to buy Holden’s Elizabeth plant and keep making Commodores
December 23, 2015 9:12pm
PAUL STARICKCHIEF REPORTERThe Advertiser

Holden: Plant could be sold to multiple buyers
Ideas: Plant could become advanced manufacturing hub
Holden needs to make costly upgrades to its V6 engines
Senate: Build trucks to save jobs after Holden closure

A BELGIAN entrepreneur who wants to buy GM Holden’s Elizabeth car manufacturing plant says he hopes to continue making Commodores and other current-model cars there for some years.

Guido Dumarey, who turned around an ailing French GM transmission plant he bought in 2013, is in early talks with state and federal governments about taking over the Elizabeth factory.

His Punch Corporation’s plan involves initial contract car making for other manufacturers, including Holden, then building its own vehicles within five years.

Holden says it would carefully assess any detailed plans and Industry, Innovation and Science Minister Christopher Pyne says he sees real possibilities for Punch at Elizabeth and will work with them to try to make it happen.

Mr Dumarey, who is being introduced to government and industry leaders by Senator Nick Xenophon, is understood to be prepared to invest at least $150 million into the project and retain the existing workforce.

The lower Australian dollar makes an export industry plausible but Punch must overcome obstacles with maintaining Holden’s supply chain and securing its intellectual property if it is to go ahead.
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It is understood Mr Dumarey has had an initial informal meeting with Holden but the company says it has not yet received a detailed proposal.
Punch Corporation CEO Guido Dumarey and independent Senator Nick Xenophon outside City Holden. Picture: Bianca De Marchi

Mr Dumarey said he was seeking to reach agreement by mid-2016, in order to ensure a “seamless transition” of plant operations once Holden stopped operations by the end of 2017.

“We have been looking at the GM plant in Elizabeth for some time and, based on our experience with rejuvenating a GM transmissions plant which was due to be closed in Europe, we can see a unique opportunity here to build a different but viable premium vehicle manufacturing and export operation in Australia,” he told The Advertiser.

“To make it a reality will require all parties to work quickly and cooperatively and, to that end, we are pleased to see recent statements by GM that they are open to discussions about options for the plant ...”

It is not known what level of government funding Punch would seek to maintain Elizabeth manufacturing operations but Mr Dumarey has previously highlighted $800 million in industry funding which he says “must be correctly used”.

The Strasbourg plant his company bought had been slated for closure, costing 1000 jobs. But GM provided purchase guarantees for the transmissions in the first two years and the plant is now heading for 1350 workers, with BMW as its biggest customer.

Responding to Mr Dumarey’s comments, Holden issued a statement which said: “If a party is interested in the ongoing use of one our sites, Holden and GM will carefully assess any detailed plans should they be submitted.”

Senator Xenophon stressed talks were in early days and it was important not to unduly raise hopes.

“The next six months will be absolutely critical for the future of automotive making in this country. I’m not going to die wondering and want to make sure I did everything I could to automotive making stays in this country,” he said.

Mr Pyne, who met with Mr Dumarey on Tuesday, said: “I see real possibilities for Punch at Elizabeth but much depends on General Motors and so, because my number one priority is jobs and growth, I will be working with them to try to make this happen.”

Labor industry spokesman Kim Carr said he would work with the Government to try to make the Punch proposal happen.

“While this proposal offers great opportunity, there remain obstacles yet to be overcome but I would urge Punch Corporation’s initiative be given thorough investigation,” Senator Carr said.

State Automotive Transformation Minister Kyam Maher confirmed his meeting with Mr Dumarey and said the Government would work collaboratively on any proposals for northern Adelaide, including the Holden site, that might contribute to the SA economy.

http://www.adelaidenow.com.au/news/sout ... 50b37b9dd2


As usual Senator Xenophon pushing above his weight doing what he can for the people and our state, while our two main parties sit on their fat over paid asses doing nothing and waiting for things to magically happen for them so they can take credit.

If state governments and our federal government give a shit about Australian jobs and the Australian economy, then they'll go out of their way(within reason) to do what they can to make this a real possibility of happening.

We also have a few startup companies hoping to start building electric or hybrid vehicles here.

[claybro]

Why do GM Holden even get a say? Sell the plant and let someone who can run a manufacturing plant without rolling over to the unions get on with it!

[Waewick]

Why do GM Holden even get a say? Sell the plant and let someone who can run a manufacturing plant without rolling over to the unions get on with it!

they own the plant i guess.

be great if something comes of it.

[claybro]

In a perfect world of no corporate greed, GM would gift the plant to the government for all the millions gifted to it by various governments, including recently the huge injection by the U.S. government. It is time these corporations were required to give back. Holdens could then disappear quietly into irrelevance and leave in place an organisation that can function efficiently as a manufacturer withou constant handouts. All power to the new operation whoever theysy be... We need them to succeed!

[SRW]

I think the issue with GM's involvement is that this Punch Corp relies on access to its intellectual property.