Budget May 2014 – “Budget overlooks young Entrepreneurs”
By smartpayroll | May 28, 2014
It seems it is now Older Workers v Younger Workers.
The Government’s budget has nothing for the next generation of aspiring entrepreneurs. I have a number of friends that are dealing with an interesting issue. They are all older than me so I don’t have first hand experience of this but I have been listening to them explain that their biggest worry right now is finding work for their kids that are aged 18-23.
As we all know that when you’re that age and looking for your first job – you just need a start!
You need someone prepared to take a risk on you and someone prepared to teach you. Once you have that first job secured on your CV you are generally employable from then on.
Issues with finding employment
- When wages are so high business employers see very little payback or return on their investment in training these new workers when they think the new worker is only going to stay a short while. Minimum wages keep going up and up which helps people working and receiving the minimum wage but deters employers from hiring new ones.
- It’s all well and good to invest more money into training but there needs to be work and jobs for these people when they come out, otherwise a lot of money is wasted, training organisations make large profits and students end up with large loans based on false expectations that will incur higher interest that they have to pay back quicker.
- Many older workers have not adequately provided for their retirement and their expectations of the lifestyle they want are still linked to their current lifestyle so they cannot give up the income easily.
- With older workers being much healthier, they are staying in work much longer and slowing down the natural employment cycle creating a lot more workers available for work.
- Also with older workers hanging on longer, the career ladder for the workers below at their work peak in their 40s and 50s are often stifled because people are not vacating senior positions until their late 60s and right up to 70. This creates a huge backlog of work energy, creativity and gains for the economy that are not being realised.
- I like the government backed loans for start-ups and more funding for innovation and research and development as this will stimulate new business economic activity.
- Increasing the retirement age to 70 is only going to make this whole problem worse, sure I may get a $10,000 incentive for hiring someone over 50 but what about the kids?
- Creating incentives to help local Australian businesses to build global businesses that export our IT smarts via the cloud is an easy way to achieve positive job growth for the younger generations – let’s face it they are mostly all whizzes on technology and earning our country overseas export dollars is the fast track to get out of a recession.
- With unemployment expected to rise to 6.25% it is only going to get worse before it gets better.
- Finally, instead of taxing all the high income earners a “budget repair levy” as if it’s their fault – I’d suggest calling it the “help tomorrows workers” tax and give these 18-23 years a job by subsidising their wages.
Helping young Australian workers
We could all do with some help in our businesses. If it helps a new worker get started in their working life and contributes to the economic growth of Australia, then from an Entreprenuers point of view, I like that idea.