Companies will shed labour in 2025 to achieve a better bottom line. Are you prepared?

A summary of a stark KPMG economic report on the sustainability of jobs says "the Australian economy has halted at an aggregate level, as unbudgeted public demand increases".

Some highlights to ponder;

• The June quarter 2024 national accounts painted a picture of an anaemic economy, and whilst the challenges are not necessarily visible in key headlines, the 0.2% quarterly real GDP growth was more tepid than expected.

• Household discretionary consumption fell 1.1% this quarter, while the household saving-to-income ratio remained the same at 0.6%.

• Taxes on production and imports rose 0.3%, with taxes on financial and capital transactions, land tax, and excise tax being responsible for most of this growth.
• Private demand is falling, while public demand is running too hot, making policy decisions more challenging for the RBA in addressing inflation.
• The global economy has reached an inflection point with monetary policy now facing an easing pathway in the near term, although the extent and length of this easing remains unclear.
• The ray of light in an otherwise relatively bleak economic narrative remains the resilience of Australia’s labour market, Australia’s unemployment rate remains very low by historical standards and relative to our developed economy peers.
• The flip side of this labour market strength has been falling productivity, the fundamental building block to economic prosperity.
• One related argument for these poor productivity outcomes relates to businesses holding onto (previously) scarce labour during a period of poor growth in economic output due to low demand.
• Such a scenario is simply unsustainable as businesses record falling (and potentially negative) profits, triggering businesses to start to shed labour in order to achieve a better balance between outputs and inputs.

Bruce Gregory Associates are used by HR Professionals needing 1:1 personalised outplacement for Managers’, Executives’ & Professionals’ when it is time for them to move on. We have 25 years assisting Managers’, Executives’ & Professional’s from and to Corporate & Government.

Our role is guiding and assisting our clients to get a new career path and then sourcing jobs that suit their aspirations. We often work 24/7 face to face by Zoom, Email, Mobile or Land line, and after hours are OK.

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