Job Losses for Manufacturing

By Paul Howes

The annual survey of 880 Australian companies by the Australian Industry Group (AIG) has found that employers expect to shed 2 per cent of the manufacturing workforce in 2002 despite the same survey finding that most companies predict a growth in business of 2.7 per cent by the beginning of next year.

These predictions follow a drop of 3 per cent of employment in manufacturing during 2001. The textile, clothing and footwear workforce will be the worst hit area with a loss of between 5 and 10 per cent of their workforces expected.

However the industry has not experienced a down-turn in business following September 11 with more than 60 per cent of companies stating that the attacks had not affected their business. Although 5 per cent of firms claimed the September 11 did have an effect on their business.

Exports look good for the sector with an expected increase of 5 per cent by the end of the year, although most firms expect exports to dip mid year.

AIG stated that employment in the sector looks bleak throughout 2002 and they have said that this will be caused by the uncertainty of the economy in the first half of the year and firms will continue to look for ways to lower costs there fore leading to a loss of jobs.

For further information

Contact:   Paul Howes
Phone:   02 9264 1691
Fax:   02 9261 3505
Email:   p.howes@labor.org.au