The AMWU was predicting about 50,000 jobs directly related to the industry would go. That has already started as there are now no forward plans to develop new models as the industry winds down to it's death knells in 2016 and 2017.
However the full implications of all related industry jobs are now being predicted to hit 200,000 manufacturing jobs, or 21% of the Australian manufacturing workforce.
Congrats Tone's, after a quarter century of straight economic growth you'll have managed to send the country into recession in just one term of gov. That takes some real fuckwit talent.
When all the car factories close, that will add about 12,500 people to the dole queue. Most of the parts suppliers will also close their plants, adding a further 33,000 people.
However, when you apply the six-to-one multiplier effect endorsed by the 2008 Bracks report on the car industry and the assistance provided, Senator Nick Xenophon reckons there will be between 150,000 and 200,000 people out of an automotive-related job.
The Department of Industry reckons there are around 930,000 people employed in manufacturing around the country. So if 200,000 automotive workers lose their jobs, that will represent more than 21 per cent of the entire manufacturing workforce.
Yet no one in the Abbott government seems to be aware of the calamity that is quickly approaching. It is going to be a body blow, not just to unemployment levels and welfare payments, but also to manufacturing output due to the loss of $29 billion in local value-adding. In addition, the trade deficit will expand because a further 150,000 vehicles will have to be imported to meet demand – and Australia will also lose the benefit of Toyota's annual export of 90,000 vehicles to the Middle East.
Add to that the elimination of the car industry's capital expenditures, which were running at a reduced $1 billion a year after the Global Financial Crisis. Read more
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