A new government report has made a stunning prediction about the state of Australia’s jobs market as the economy transitions away from mining.
According to The Australian, it predicts that 45 per cent of the new jobs by 2018 will be in health, education, public administration and safety.
This means more workers will be paid their salaries with taxpayer money, as these sectors largely benefit from increases in public funding.
There is already a lot of public debate over tax reform and the increase in these sectors will only make these calls louder, according to Sinclair Davidson, a professor of economics at RMIT University.
“Having larger shares of the workforce ultimately dependent on government means fewer private taxpayers and therefore greater pressure for higher taxes,” he told The Australian.
“In particular, we’ll see more calls for the GST to increase because much of these health and education jobs are paid for out of state government budgets.”
The Department of Employment report predicts the mining sector will lose 4.5 per cent of its workers — about 40,000 positions — over the next five years.
Over the same period, 59,000 new jobs will be created in school education, 49,000 in medical services and 229,000 in healthcare and social assistance.
Meanwhile, the report also predicts overall job growth will fall short of Prime Minister Tony Abbott’s pledge to create one million new roles. Rather, it says there will be around 838,000 new positions by 2018.
But it also warns this prediction “may not fully take account” of the Government’s plans to get rid of the mining taxes and cut regulations.
There’s more here.
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