Cyprus-Forum.com

[CBBB]

On the radio this morning they were saying that Australia is about to close it's doors to skilled workers due to the downturn.

[Paphitis]

On the radio this morning they were saying that Australia is about to close it's doors to skilled workers due to the downturn.

I guess it all depends on many things.

Australia has been closing manufacturing jobs for years. Businesses are moving offshore to take advantage of cheap labour.

Cyprus and Australia are in very similar positions. Australia is still forecasting around 4% growth and Cyprus is about the same. Property prices have not dropped much either. Mining and Defence industries are keeping Australia afloat, as well as a healthy banking system.

Unemployment may rise by about 2%.

Interest rates have dropped by 1.75% in the last 2 months and may head towards 2%.

Some people have got massive pay rises due to skill shortages. So it depends on your industry I guess.

[Paphitis]

Australia has chronic shortgaes in Mining, Defence, Aviation and Engineering sectors. Median salaries are sky rocketing.

We are importing people from Canada, USA, South Africa and Britain. Retention bonuses of $60,000 pa have been introduced to prevent people from leaving. And that is just a retention bonus paid each year!

[CBBB]

That is not what they were saying on BBC Radio this morning.

[Paphitis]

That is not what they were saying on BBC Radio this morning.

What were they saying on BBC?

I was simply saying that there are sectors which have a chronic shortage in skilled workers.


For example, one company has gone on a recruitment drive in London, Seattle, and Montreal. They have just inducted 30 people from Britain, South Africa, and Canada. Only 5 Aussies were employed because the market is dry. The people with the required experienced are just not available. These people have arrived 2 weeks ago and have been sponsored in Australia with temporary 457 visas. Retention bonuses were also introduced for this skillset.

However, the axe has been falling on less critical areas such as administration and middle management.

[CBBB]

They were talking about IT and other service industries. I checked the BBC website, but can't find any references to the article.

[Paphitis]

They were talking about IT and other service industries. I checked the BBC website, but can't find any references to the article.

There is no doubt that some sectors will be hurting. Our IT division has been trimmed to a skeletal outfit. Other areas that are suffering are middle management.

I am being sarcastic in saying there will be no effect in Australia. But on the other hand, there are industries where there is such a massive shortage.

It is not all bad for everyone, including the average family, which has an average household debt of about $250,000, according to statistics.

[CBBB]

Australia's big advantage is natural resources which will always have a demand no matter how much the global economy slows down.

[Paphitis]

Australia's big advantage is natural resources which will always have a demand no matter how much the global economy slows down.

Exactly!

Another big advantage Australia has is a booming Defence Industry.

On the downside, commodity prices have fallen, and this has resulted in the Aussie Dollar drastically falling.

But the mining and defence industry are so strong, and should see Australia ride the storm better than most other nations.

But there still be a knock on effect. Unemployment will rise slightly, growth will slow slightly, and property prices may fall.

You can expect the same in Cyprus as well. But it will not be all that bad.

Cypriot Banks are even buying Russian Banks.

http://english.people.com.cn/90001/9077 ... 09361.html

http://www.ibtimes.com/articles/2008062 ... astrum.htm

http://en.rian.ru/business/20080905/116585369.html

Cyprus should pull up fairly welll.

[CBBB]

Inshallah!