More Unemployed In Australia

Press, Volume C, Issue 29626, 23 September 1961, Page 16

More Unemployed In Australia

[By GRAEME BROOKS] MELBOURNE. Immigration from Britain and other European countries climbs steadily towards the annual 125,000 target but Australia’s political, industrial and labour leaders see no early reversal of the worsening unemployment trend.

The Government, working on the conservative figures of vacancies actually registered with its own employment service, admits to a post-war peak number of jobless —in May, 102,554 or 2.4 per cent, of the working population.

The Commonwealth Employment Service records jobs an.', vacancies mainly for manual workers. To be added for a national total are the white collar workers dismissed and other unemployed seeking new jobs without assistance.

Estimates of the actual number of unemployed are fairly consistent at around 4 per cent, or about 150,000. In addition there are the thousands of workers on short time; union sources estimate they could be as many as 50,000. • Unemployment and its sequel of reduced purchasing power has begun a diminishing spiral which now confronts consumer goods industries and marketing outlets with one of their biggest crises since the war. The Commonwealth Bureau of Statistics estimates that at the end of May—latest details available —Australia’s retail hire purchase balances outstanding decreased for the fifth successive month, to £ N.Z. £329,000,000, 1.4 per cent, below the figure for May last year and £31.000,000 down on the level for last December. At the same time, official figures show that bank deposits dropped to £1,377,846,000, or £5,600.000 under the figure for the previous May, while in despite of the release of £19,200.000 from statutory reserves, bank advances fell by more than £4,800.000. Hardest hit have been the building textiles and knitted goods, clothing and footwear, and metal (including motor) industries, which are among the main employers of migrant labour.

Tighter Credit

When it introduced tighter credit measures last November in a move to offset the collapse of overseas reserves which followed almost unrestricted imports, the Government warned that these industries were among its main targets. The treasurer, (Mr Harold Holt) reaffirmed this in February when minor changes of credit policy were made. This depressing effect has been achieved, but observers now suggest the Government’s advisers did not anticipate it would have such an impact on ancillary industries, primary and secondary. The Australian Government, faced with Opposition and industry criticism, has declared through the Prime Minister, (Mr Menzies): “We are not blundering along, hoping for something to turn up.” He added: "Our policies have been constant . . . The depression of the 1930's cannot happen today . . . Australia has a broad-based economy.” Mr Menzies has declined to comment on the unemployment figures released by his Department of Labour, but it is learned in Canberra that the May trend, with its increase of 0.3 per cent, for the month, was expected by the Government to continue until at least August when, it was hoped, there would be some benefit from the recent relaxation of credit to assist home building and the 196162 Government spending pro-

gramme got into its stride. The Labour political leader, Mr Arthur Calwell, has indicated that full employment will be a major plank in his party’s campaign for the Federal election late this year, but he has also warned that greater Government control of corporations and hire purchase might be necessary to restore and maintain economic stability. Moratorium Plan He has also suggested that while unemployment business closures and credit restrictions continue, a moratorium be considered “to protect personal possessions and property for siezure or foreclosure.”

Although the Government hopes for some improvement in the position in a few months, outside interests are less optimistic. In a political speech. Mr Calwell said unemployment would be felt “for a long time yet.” Demands from some unions that migration be suspended or halted while the recession lasts have been rejected by the Government, and also by the powerful Australian Council of Trade Unions.

Replying to an Opposition question in Parliament as to whether the Government was considering trimming the migrant intake in view of unemployment and the housing shortage, the Minister for Immigration, (Mr Alex Downer) declared the planned intake of 125,000 for the year would be achieved and might even be a little exceeded (A recent reliable estimate is that it will have reached 134,000 for the financial year).

Mr Downer said the Government always watched the unemployment position closely. As far as immigration was concerned “you can be sure nothing will be allowed to . interrupt the Government's fine record." Official resources told Reuter that with immigration planned to contribute 1 per cent, of the net population gain, it was considered unwise to try to adjust a necessarily long-term project to what was regarded as a short-time domestic difficulty.