The look of the workforce is slowly evolving. Whereas previously a nine-to-five job was set with employee benefits including annual and sick leave, now workers are facing more opportunities in casual and part-time position, with less stability and assistance.
Only recently did the number of casual and part-time jobs outweigh that of full-time positions. What is the first time in Western Australia’s history!
Commentators will say the average Australian will have multiple jobs with more flexible hours, others will say the trend will have negative consequences. Barry Urquhart from Marketing Focus looks closer at the latter way of thinking.
“Those people who have part-time and casual employment will find when they go to the financial institutions, it’s very difficult to get a loan to buy a new motor vehicle likewise if you want to get up that ladder to get home ownership. First homebuyers are going to find it increasingly difficult to be able to substantiate stability of income therefore the ability to repay loans”
Mr. Urquhart also points out that with less financial stability with employment more and more people will move into self-employment, which also has its risks.
“Unfortunately, less than two percent of the workforce have got any degree in management and therefore they’re vulnerable because a lot of people, and this is not me in any way being condescending, we are financially illiterate”
Barry Urquhart’s comments are substantiated. The Australian Bureau of Statistics recently announced that in the past two months over 32,000 Australian’s have declared bankruptcy. Just under four-thousand of those are from Western Australia. And the solution?
“what we’ve got to do is recognise that there is a new realty and you’ve got to get out there and start to recognise the importance of stability of income and taking and mitigating against risk”
Barry Urquhart also recommends parents thoroughly educating their kids about employment and long-term planning. Parents need to verse their kids in business skills and building because the likelihood is that the next generation will be more independent. 92% of businesses in Australia are small to medium sized or solo and in America that percentage is 99%. Those figures have been trending upwards for some time and unless there is significant government intervention, will continue to rise. Speaking of the government… Barry again.
“I hear this all the time when federal governments say, well we under our rule have employed or generated so much employment, they can facilitate it they can’t make it… governments have got to step back, allow the entrepreneurism and individuality of people in Australia to go out and create their own circumstances and wealth and then just to support people and not try be able to identify what they want and what they want the Australian economy to be.”
Barry spoke a little more about the government and its failings to understand the economy. That’s for another article though. Or, head to the Catch Up link and listen to the whole chat at the link below!