Home > New modelling claims up to 200,000 jobs lost as car makers shut factories

New modelling claims up to 200,000 jobs lost as car makers shut factories

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According to a new study, the end of the car industry in Australia could see up to 200,000 jobs lost.

The National Institute for Economic and Industry Research modelling, commissioned by Adelaide University, claims that almost 200,000 jobs and $29 billion in lost economic activity could be seen from the end of manufacturing by Holden, Toyota and Ford.

All these companies have announced they will close their factories in 2016 and 2017.

The ABC reports that the the projections would see 100,000 jobs lost in Victoria, over 30,000 in Queensland and NSW, and nearly 24,000 in South Australia.

"This is a national as well as a regional problem," said the university’s John Spoehr, who co-wrote the report Closing The Motor Vehicle Industry.

“The impact of a closure of this magnitude is going to have effects right down the supply chain and beyond, into a range of other industries that are affected by the loss of wages and salaries that flow from people losing their jobs,” he said.

Spoehr’s figures have been contested, however, for example by carsguide.com.au, who claim that 200,000 job losses isan exaggeration of up to 400 per cent. South Australia’s Advanced Manufacturing Council and Auto Skills Australia also dispute the number.

Bill Scales, the former head of the Automotive Industry Authority, told Four Corners last night that the demise of the three car makers and many of their suppliers would be profoundly felt at a regional rather than national level.

"But we can't ignore the social cost on a regional basis," he said.


Image: http://econews.com.au/

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