11 July 2012: Darryl Lea to sell and weakening labour market stats

Confectionery retailer Darrell Lea appoints insolvency firm after 85 years of operation.  Sales have fallen 20% over the past five years to about $80 million, posted a bottom line loss of $3.3 million in 2011. Points to influx of Lindt, Haigh’s, Max Banner and Guyilan, coupled with underinvestment in Darrell Lea brand and stores. Also been dogged by in-fighting from siblings over the family empire. For sale is the brand and 69 stores and manufacturing operations, employs 700 staff. [CR: No matter how long an organisation has been around, they are always at risk from external challenges, and internal challenges don’t help.]  (Sue Mitchell, Will Glasgow)

Labour force participation rates for women with children under 15 increased 66% between 2001 to 2009 (Household, Income and Labour Dynamics in Australia). Lone mother participation rates increased from 51% to 64%. Attributed to nation’s improved economic performance, the need for additional family income, preference for shorter career breaks, and government policies such as the 2004 childcare tax rebate. Biggest increases in spending were on housing rents and mortgage payments while car costs and petrol feel the most. Most likely major life event facing Australians over a 12-month period were changing jobs and moving house.  [CR: Interesting how moms in the workforce is attributed to “improved” economic performance AND need for additional income.  We are doing better so we need to work more? In a country where the primary stress is changing jobs. Something feels not quite right here.] (Jacob Breger)

Degrees versus apprenticeships: Apprentices earn an average of $52k after training (2010 National Centre for Vocational Education Research NCVER) compared to $50k for bachelor graduates (Graduate Careers Australia survey). Federal government aiming for 40% of young Australians to have a bachelor’s degree or above by 2025. Tertiary Education Minister Chris Evans figures show 2.4% increase in higher education enrolments in 2011 from 2010, NCVER May data shows 6.9% increase in apprenticeships.  Bachelor degrees show higher income in subsequent years. [CR: Access to education is critical, but so is initiative and opportunity.] (Primrose Riordan)

Labour market is weakening, making it harder for blue-collar workers (manufacturing, wholesale, transport, construction) to find work outside the mining sector especially for males over 50.   Unemployment is 5.1%, expected to hit 5.2%.  Structural changes have driven growth towards mining and energy, while online shopping and frugal consumer spending habits decrease growth in retailing, manufacturing, and travel. In FY2012, mining sector employment grew 24%, whereas all other sectors which represent 98% of total employment remained flat. [CR: A clear example of the two-speed economy. Knowing this, how will you cross-skill?] (Bianca Hartge-Hazelman)

China’s southern Guangdon province discharged 9.5 billion tonnes of raw sewage (75% of Guangdon’s output) into local rivers. Over 50% went into the Pearl River Delta. [CR: One of the world’s fastest growing economies, and still we have this.]