Wise investment policies, including avoidance of derivatives packages for sovereign debt, and a booming commodities sector, fueled by a mining surge have made Australia an economic model and the envy of many of its struggling neighbors. But Australia's 'copper' rush might be coming to an end, and with it, the level of prosperity that made the land down under look so economically good.
One of the first signs of an impending slowdown is the sudden spike in unemployment, which reached 5.7% in June. The hike was also higher than forecast, at 5.6, for that month.
Although the economy is still creating jobs, there has been a steep drop in full time employment.
The most important factor is the worker layoff in recent months from mining interests throughout Australia. After that, Australia will have to create a more diverse economy, with a broader range of jobs to ensure that it stays on track.
The trend will get worse before it gets better. Some cities, those where the mines employ the most workers, will see even steeper drops, until the economy levels out. How Australia doe diversify and create new opportunities remains to be seen.
Source : France 24/7.11.13
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