Prime Minister Julia Gillard has promised to deliver a new jobs program that will help strengthen economic reform and address the skills shortage.
In a speech to the Committee for Economic Development of Australia, Gillard said the resources boom has helped the economy greatly but that the issue of skills shortages needs to be answered.
“The biggest challenge arising from the boom is the shortage of skills,” Gillard said. “After three decades when unemployment was our major problem, we now face shortages of labour – a problem unmatched anywhere in the industrialised world.”
The Government said it will target 800,000 Australians who are underemployed and a further 800,000 outside the labour market.
Tower Australia has said that the changing economic and regulatory environment mean there is an “interesting” year ahead for the company.
Chairman Rob Thomas told shareholders at the general meeting today that the government has noted several changes coming to the financial services sector.
“An APRA (Australian Prudential Regulation Authority) review of capital standards for life insurance companies which is currently underway may require Tower Australia to hold additional capital,” he said.
“We do not believe any significant increase is needed and we will endeavour to ensure that appropriate returns are priced on any additional capital required.”
Managing director Jim Minto also added the life insurance market is continuing to grow, and that competition is now much stronger than it was previously.
“We have set solid return-on-capital targets for the next three years, and these have been well responded to by shareholders.”
The Australian sharemarket has opened over 1% higher this morning following a solid night on Wall Street where stocks reached a two-and-a-half year high, due to positive manufacturing data, although investors are awaiting the impact of cyclone Yasi.
The benchmark S&P/ASX200 index was up 49 points or 1.04% to 4801.5 at 12.10 AEST, while the Australian dollar gained a boost yesterday to over $US1.02. It steadied this morning at $US1.01.
Commonwealth Bank shares gained 0.3% to $52.59 as NAB shares also rose 0.3% to $24.66. ANZ lifted 0.6% to $23.82 as AMP shares rose 0.2% to $5.31.
Wheat harvester GrainCorp has upgraded its 2011 financial year outlook, saying grain received should be 14 million metric tonnes.
The company also said it had revised its export guidance for grain to 6.5-7.5 million tonnes, adding that while infrastructure survived the recent floods, many of its facilities were evacuated.
Sleep disorder company ResMed has said it surprised by the resignation of its chief executive Kieran Gallahue, who will leave for another medical firm.
In a statement, ResMed said Gallahue will not receive any severance benefits, and will be replaced by executive chairman Peter Farrell until a replacement is found.
“Kieran’s resignation came as a surprise but we wish him well,” Farrell said. “During his three years as chief executive officer, he helped build a strong senior management team and I look forward to leading that team as long as is needed.”
“As executive chairman, I remained closely involved with ResMed’s strategy, so stepping back into the CEO role will not be a novelty for me and will ensure continuity for the team.”
New data from the Institute for Supply Management has raised hopes for the American economy, showing that manufacturing activity is now increasing.
The Institute found that the sector grew at its fastest pace in nearly seven years in January, and signs of inflation jumped more than expected.
However, chair of the ISM manufacturing business survey committee Norbert Ore, warned Reuters that, “I still would caution that the employment number is more about the willingness to hire, rather than an increase in the absolute numbers”.
On Wall Street, investors were encouraged by strong results from shipping group UPS and the manufacturing data, sending the Dow and the S&P500 to their highest levels since June 2008.
The Dow Jones Industrial Average gained 148.23 points or 1.25% to 12,040.16.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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