On Wednesday, the Australian tech giant Canva told more than 1,200 staff around the world that they would lose their jobs.
asserted
they → tell → jobs
On Thursday, administrators took charge of the iconic Aussie brand David Jones.
asserted
administrators → take → brand
In the space of 24 hours, as a nation we got a pretty good look at what job insecurity feels like at both ends of the business spectrum.
asserted
insecurity → get → spectrum
You could’ve spent the past decade steering your kids away from a career on the department store floor and towards one in Australian tech.
uncertain
You → spend → tech
This week you might wonder what advice to offer them next.
uncertain
you → wonder → them
The grand old lady of Australian retail has already outlived plenty of predictions of her demise.
asserted
lady → outlive → demise
When online shopping took off, who would have bet on David Jones still being around decades later?
asserted
Jones → take → ?
You could buy a shirt on your phone, compare the price with half a dozen other shops and have it delivered without ever setting foot in a department store.
uncertain
it → buy → store
Yet there was something about DJs that kept people coming back.
asserted
that → be → people
For generations of Australians it was where you went for a wedding present, a first suit or a look at the Christmas windows with the kids.
asserted
you → go → kids
The affection was real, but so was the rent, and by the time the receivers arrived, Westfield’s owner said David Jones hadn’t paid much rent since the end of September.
asserted
Jones → arrive → September
The receivers will assess which stores can survive.
asserted
stores → assess → ?
Rival Myer would have to be a strong chance of making a play for what’s left at a bargain-basement price.
asserted
what → have → price
As David Jones plunged into administration, CEO Erica Berchtold told staff on Thursday: 'For today, our stores and online operations remain open and trading ...
asserted
stores → plunge → today
You remain employed and should continue your normal duties unless you are directly advised otherwise.'
asserted
you → remain → duties
Melanie Perkins, co-founder of tech darling Canva, announced the job cuts in an email to staff this week
Meanwhile, thousands of employees face the Christmas rush wondering whether they’ll have a job on the other side of it.
asserted
they → announce → it
Canva’s predicament was harder to imagine not that long ago.
asserted
predicament → imagine → ?
Here was an Australian start-up made good, making design easy enough for anyone to have a go at.
asserted
anyone → make → go
Now anyone who wants a poster for the school fete can simply ask AI to make one by typing a sentence.
asserted
who → want → sentence
Canva has AI tools of its own, of course, but they cost money to run and its customers have other ways to get the same job done.
asserted
job → have → ways
Canva didn’t blame AI for its ‘restructure’.
asserted
Canva → blame → restructure
Co-founder Melanie Perkins told staff growth had slowed.
asserted
growth → tell → staff
But the company is confronting the costs and competition that come with the latest technological revolution.
asserted
that → confront → revolution
The internet gave Canva the chance to challenge established businesses, much as online retailers had challenged David Jones.
asserted
retailers → give → Jones
It took rather less than 188 years for Canva to discover how it feels when the next invention comes along.
asserted
invention → take → years
Two companies with troubles of their own can tell us only so much about the Australian economy.
asserted
companies → tell → economy
The better test is what happens to the people who leave these jobs.
asserted
who → happen → jobs
We are entering an increasingly uncertain period.
asserted
We → enter → period
In a healthy jobs market, a sales assistant who loses their job at one shop can find a start at another.
asserted
who → lose → another
When retailers up and down the same strip are quietly leaving vacancies unfilled, they’ve got a much bigger problem in front of them.
asserted
they → leave → them
So does the economy, because anyone struggling to find work will cut spending, which has a whole roll-on effect.
asserted
which → do → effect
And there are entire generations out there that haven’t experienced anything like this before.
asserted
that → be → this
That’s where the R-word comes in.
asserted
word → ’ → ?
HSBC economist Paul Bloxham puts the chance of an Australian recession at 50-50.
asserted
Bloxham → put → 50
The RBA still expects the economy to grow.
asserted
economy → expect → ?
Even if it does, we could land in a per capita recession instead, with economic output per person shrinking for two consecutive quarters.
uncertain
output → do → quarters
For individuals, that feels the same as a technical recession.
asserted
that → feel → recession
If the population grows faster than the economy, the amount we produce per person goes backwards.
asserted
we → grow → person
A government can point to a bigger economy while its citizens feel very differently.
asserted
citizens → point → economy
The iconic retailer's future is on the line after David Jones failed to pay rent to Westfield
Unemployment hit 4.7 per cent in September.
asserted
Unemployment → fail → September
…and 17 more, not listed.
The Aporia
