22 Jul 2024

How Powerful Are the Remaining Royals?

John P. Ruehl




Photograph Source: Copyright House of Lords 2022 / Photography by Annabel Moeller – CC BY 2.0

Recently appointed British Prime Minister Keir Starmer pledged his loyalty to British King Charles III on July 6, 2024, continuing a tradition that dates back centuries. However, since the leadership role taken by Prime Minister David Lloyd George in World War I, the monarchy’s political influence has become progressively ceremonial and even more precarious since the death of the late Queen Elizabeth II in 2022.

This trend is not unique to the UK; in recent centuries, the role of royalty in politics has declined considerably worldwide. As political ideals began challenging royal authority in Europe, European colonial powers began to undermine their authority overseas. The strain of World War I helped cause several European monarchies to collapse, and World War II diminished their numbers further. After, the Soviet Union and the U.S. divided Europe along ideological lines and sought to impose their communist and liberal democratic ideals elsewhere, and the remaining monarchs faced accelerating marginalization.

Today, fewer than 30 royal families are politically active on a national scale. Some, like Japan’s and the UK’s, trace their lineages back more than a millennium, while Belgium’s is less than 200 years old. Several have adapted by reducing political power while maintaining cultural and financial relevance, while others have retained their strong political control. Their various methods and circumstances make it difficult to determine where royals may endure, collapse, or return.

Alongside the UK, the royals of Belgium, Spain, Sweden, Norway, Denmark, and the Netherlands have all seen their powers become largely ceremonial. Smaller European monarchical states like Andorra and the Vatican City are not hereditary, while Luxembourg, Monaco, and Liechtenstein are—though only the latter two still wield tangible power.

Attempts to exercise remaining royal political power have often highlighted its increasing redundancy. Belgian King Baudouin’s refusal to sign an abortion bill in 1990 saw him declared unfit to rule before being reinstated once it passed. Luxembourg’s Grand Duke Henri meanwhile lost his legislative role in 2008 after refusing to sign a euthanasia bill. Following increasing scrutiny of Queen Beatrix’s influence, the Dutch monarch’s role in forming coalition governments was transferred to parliament in 2012, and she also lost the ability to dissolve parliament.

The British monarch’s decline in political influence is also evident, but it can still prove useful. The royal family’s global popularity is used to project soft power, while royal visits can help seal important agreements, particularly in countries with other royal families. The leaders of 14 other countries also pledge allegiance to King Charles III as their head of state.

Additionally, the monarchy can be used to bypass certain democratic processes. In 1999 the British government advised Queen Elizabeth II to withhold Queen’s Consent, preventing parliamentary debate on the Military Action Against Iraq Bill, which would have restricted the ability to take military action without parliamentary approval.

Royal efforts to cultivate soft power and maintain a positive public image have also been crucial for their survival. Belgium’s royal family is seen as a necessary source of political stability and unity. In Spain, former King Juan Carlos played a leading role in the country’s transition to democracy in the 1970s. Modernizing their image as neutral political guardians with relatable attributes who engage in advocacy and humanitarian work often gives European royal families higher approval ratings than politicians.

Royal families have also downsized in recent years for discretion and to reduce costs. In 2019, Sweden’s king removed royal titles, duties, and some privileges from five of his grandchildren. The Danish queen implemented similar changes in 2022. Norway’s royal family now consists only of the King, Queen, Crown Prince, and Princess, while the British royal family has hinted at further reducing its current number of 10 “working royals.”

Despite these efforts, European royal families continue to face scandals and intense public and media scrutiny. In 2020, Spanish and Swiss authorities began investigating former Spanish King Juan Carlos for allegedly receiving $100 million from a deal with Saudi Arabia. In 2023, Belgium’s Prince Laurent was accused of fraud and extortion by Libya’s sovereign wealth fund. The UK royal family’s recent treatment of Megan Markle and the departure of Prince Harry and Prince Andrew’s association with Jeffrey Epstein have also rocked Britain. The British monarchy’s unprecedented challenges are reinforced by record-low support since the death of Queen Elizabeth II in 2022. The King’s and Princess Kate’s cancer diagnoses have also added to the sense of fragility.

Across Europe, cultural shifts, concern over royal expenses, and increasing political irrelevance have threatened its royal families. Movements like the Alliance of European Republican Movements, created in 2010 to abolish monarchies altogether, reflect the increasing disregard for royal power.

The opaque nature of royal finances, however, has granted some respite. Officially, Grand Duke Henri of Luxembourg’s $4 billion makes him Europe’s richest royal. However, suspicions abound regarding billions more in assets like trusts, jewelry, and art collections that point to larger degrees of wealth.

Extensive efforts go into hiding these fortunes. Liechtenstein’s royal family operates a bank criticized by the U.S. Senate for aiding clients in tax evasion, dodging creditors, and other misconduct. Queen Elizabeth II once used Queen’s Consent to change a draft law so that her wealth remained concealed, while the Panama Papers leaks revealed huge undisclosed European royal assets. Europe’s poorest royal family in Belgium saw King Phillippe declare the monarchy’s wealth at roughly £11 million in 2013, but the European Union Times estimated it at £684 million.

Estimates for King Charles’s worth range from $750 million to more than $2 billion, while the fortunes of the entire British royal family, also known as “the Firm,” can range from $28 billion to almost $90 billion. Britain’s monarchs also enjoy more institutionalized ties to national wealth than other European royals. Through the peerage system that upholds British nobility, a network of support from wealthy Dukes, Marquesses, Earls, Viscounts, and Barons helps the monarchy remain firmly entrenched in the UK’s wealth centers.

Royal families in the Asia-Pacific consist of Thailand, Malaysia, Cambodia, Brunei, Japan, and Tonga. Thailand’s King is the world’s richest, with a net worth of $43 billion, but faces his own controversies relating to personal scandals and the use of political powers that have led to an anti-monarchy movement. Malaysia has a rotational system of nine sultans that rule their own states and serve as head of state every five years. While formal authority is limited, the sultans command influence in cultural and religious matters, and despite their powers being curtailed by constitutional amendments, occasionally intervene in politics. In Cambodia, the monarchy is similarly politically and culturally influential.

Brunei’s absolute monarchy has granted its Sultan, Hassanal Bolkiah, supreme authority over his country for more than 50 years. His $288-billion fortune makes him the second-richest monarch in the world. However, as a microstate, Brunei’s influence in international affairs is limited. The reduced power of Japan’s monarchy since 1945 has meanwhile made it most like European monarchies, though its powers have remained steady since then. In sub-Saharan Africa, partnerships with British colonial authorities have allowed Lesotho’s monarchy to retain largely ceremonial influence, while Eswatini’s King Mswati III exerts strong control over the country.

Nonetheless, alongside Europe, most regions have seen general declines in royal power over decades. Bucking that trend is the Middle East, where monarchies previously had limited authority under the Ottoman Empire. Its collapse after World War I allowed them to increase their power considerably, even those under loose French and British protectorates.

By exploiting their increasingly valuable resource reserves, Gulf monarchies in particular managed to thrive. Today, absolute monarchies exist in Saudi Arabia, the United Arab Emirates (UAE), Bahrain, Oman, Qatar, and Kuwait with complete control over media, government branches, and law enforcement. No opposition is tolerated, and they are backed by religious lobbies that reinforce their status as custodians of cultural traditions. Despite the heavy-handed approach they largely enjoy strong support, even among the youth—the Saudi Crown Prince has long been popular among younger Saudis in particular.

As in Europe, Middle Eastern royal wealth is often hidden and difficult to discern. Estimates for the combined wealth of the Saudi royal family range from roughly $100 billion to $1.4 trillion. Other estimates put the UAE’s Al Nahyan family of Abu Dhabi as the richest royal family in the world, with more than $300 billion in wealth. The royal families of Kuwait and Qatar also have fortunes often measured in the hundreds of billions.

The other Middle Eastern royal families in Oman, Jordan, and Morocco, have less influence, but still more so than in Europe, and have also withstood democratization pressures by promoting stability. During the Arab Spring, as other Middle Eastern states faced revolutions and civil wars, the monarchies and their political systems survived in place.

However, the downfall of royal families in Egypt, Tunisia, Iraq, North Yemen, Libya, and Iran during the 20th century shows the risks of instability. Today, this often comes from within the royal families themselves. Saudi royal disputes regularly play out in public, including a mass purge in 2017. In 2023, Jordan’s crown prince was placed under house arrest for an attempted coup, only to emerge days later and pledge loyalty to the king. The 2017–21 Qatar-Saudi Crisis meanwhile saw Saudi Arabia, the UAE, Bahrain, and Egypt sever diplomatic relations and blockade Qatar following accusations of supporting terrorism and supporting Iran.

While some of their positions may be precarious, royal families maintain some solidarity among them. Marriages between European royals throughout history mean that the current ruling royals in Europe are all related, similar to some Middle Eastern monarchies. Following controversy over corruption allegations, Spain’s Juan Carlos meanwhile lived in exile in the UAE for two years.

Royals have also taken more active roles to support one another. The British royal family played a significant diplomatic role in supporting the Arab monarchs against the Ottoman Empire in World War I. And in 1962, the British monarchy, which had a close relationship with the Brunei monarchy, helped lobby to send British forces to the country and quash an armed rebellion, maintaining British influence in Southeast Asia.

Other royal families could still return to power. More than 20 royal families remain without a country to reign over, with Spain’s monarchy being restored in 1975 and Cambodia’s in 1993 the latest to be reintegrated into politics. In Romania in 1992, an estimated one million people took to the streets to welcome former King Michael, who abdicated in 1947. The daughter of former King Michael, Margareta of Romania, now lives in Elisabeta Palace in Bucharest, and other family members have taken a growing role in politics.

Bulgaria’s former Tsar, Simeon II, lived in Spain after being overthrown in 1946 and returned to Bulgaria after the communist government crumbled, serving as prime minister from 2001 to 2005. Albania’s Prince Leka, grandson of former King Zog I, attempted to reinstate the monarchy in a 1997 referendum but failed. In 2007, family members of former Italian King Umberto II sought damages for their exile and the return of assets, countered by Italy’s government suing for damages due to royal collusion with Mussolini.

The Italian royal family’s case shows how disputes among exiled royals can have geopolitical implications. Greece’s royal family now lives in London, frequently appearing at royal functions. Meanwhile, members of Iran’s former royal family, as well as descendants of Ethiopia’s and Russia’s, live in the U.S. Although there is no current method or desire to launch a political movement to put them back into power, leveraging diaspora communities’ support for royalty can still help host governments wield influence through them.

Having survived fascism and communism, monarchies have largely relinquished political power in the modern liberal world order. Yet, as symbols of state continuity, some monarchs have maintained their relevance by providing long-term stability. While incompatible with communism, royalty’s adaptability to democratic and fascist regimes highlights their resilience. Their ability to reinvent themselves and demonstrate their usefulness to contemporary politics may secure their survival—though their dwindling numbers suggest this will remain challenging.

Unemployment and lack of access to education devastate youth in Peru

Cesar Uco


According to the Institute of Economics and Business Development (Iedep) of Peru, more than 1.5million young people between the ages of 15 and 29 years are known as “ninis,” because they are neither in school, nor do they have work (ni estudian, ni trabajan).

Among the youngest cohort, two out of every five between 15 and 19 years old “do not have job opportunities or access to education,” the Iedep study shows. This portrait of the conditions confronting Peruvian youth becomes even starker when one considers that in 2023 one in three of them was officially poor, representing an increase of 12.8 percent compared to the previous year. 

Demonstrators block the Pan-American highway to protest against President Dina Boluarte's government and Congress in Ica, Peru, Friday, Janaury 6, 2023. [AP Photo/Martin Mejia]

Due to the continuing deceleration of the Peruvian economy these numbers remain worse than pre-COVID pandemic levels: they went from 1.3 million ninis in 2019 to 2.2 million in 2020, the worst year of the pandemic, undoubtedly reflecting the fact that Peru had the highest per capita COVID mortality rate in the world. The figure dropped to 1.6 million in 2021, when the economy showed some signs of recovering, only to fall back to pre-pandemic levels, increasing by 2.4 percent by the end of 2023. 

Women have made up a disproportionate percentage of ninis, 72.1 percent in 2019, 57.4 percent in 2022 and 52.4 percent in 2023.

According to the head of Iedep, Óscar Chávez, there is a high risk that the number of ninis will continue to increase in the near future.

This assessment is supported by Carolina Rivelli, an economist at the Institute of Peruvian Studies (IEP). Writing for the business newspaper Gestión, she said, “Young people who are reaching working age are having a bad time; they don’t see a promising future, and 62 percent want to leave the country, a figure 20 percent higher than the national average. This number is alarming  considering that two thirds report they do not plan to return.”

The factors behind the high emigration rate, according to IEP, are the adverse employment situation, poor economic forecasts, the lack of educational opportunities and the deterioration of democratic institutions.

Data collected by INEI (National Institute of Statistics and Information) show that in metropolitan Lima, where approximately 43 percent or 657,000 ninis reside, the number of young people under 24 years of age looking for jobs fell almost 3 percent compared to last year, and 10 percent since 2019. 

The so-called economic recovery from the pandemic has only marginally benefitted the youth. Polls indicate that 57 percent believe that the Peruvian economy is continuing to deteriorate, and another 37 percent believe it has not improved in the last year. As to the immediate future, 46 percent think the situation will deteriorate further.

Carolina Trivelli ties the overall impoverishment of millions of families throughout the country to the deterioration of educational institutions and teaching.

The Peruvian government has otherwise utterly failed to reduce long-term poverty, as well as informal employment. Seven out of 10 workers are not on a regular payroll, do not enjoy paid vacations or medical insurance, and do not receive the traditional two months of pay—bonuses in July for National Holidays and in December for Christmas.

It is hardly surprising that polls show that Peruvian youth overwhelmingly distrust organized institutions and political parties. 

The youth played a central role in the massive protests that followed the ouster of President Pedro Castillo after his failed “self-coup” and jailing in December 2022, and the massacres carried out under his successor and former vice president, Dina Boluarte.

Boluarte now is massively opposed.  She has only a 5 percent approval rating in recent polls, the lowest figure of any president since 1980, when democracy returned after 12 years of civil-military dictatorship under President Alberto Fujimori. Congress is equally detested: 91 percent disapprove of the legislators’ performance.

Boluarte also has been charged by Peru’s attorney general with genocide in connection with the mass repression, as well as with graft and corruption.

A report released by Amnesty International last week found that Boluarte and other top officials bear criminal responsibility for the deaths of 50 protesters who were killed in what amounted to extra-judicial executions and as a result of illegitimate use of force by the police and army. Another 1,300 people were injured in the repression.

Reflecting mass disaffection with the entire political setup, 30 candidates are already running for the 2026 presidential election. The traditional parties of the Peruvian bourgeoisie, such as APRA and Acción Popular, are on the verge of collapse, and seeking new candidates from within the most right-wing and reactionary sectors.

Peru is an economic, social and political tinderbox. The prevailing conditions confronting the masses, which are shared by many regions of the planet, could quickly give rise to the kind of mass youth eruptions seen in recent weeks from Kenya to Bangladesh.

Volkswagen threatens 3,000 jobs as it prepares to shut down its Audi plant in Brussels

Ulrich Rippert


The announcement by Audi management that its plant in Brussels, Belgium, is to be gradually shut down has caused huge unrest among the factory’s approximately 3,000 employees and those working in related supplier plants. Last Thursday, the Audi Works Council met for the second time to discuss its response.

Audi plant in Brussels [Photo: Karmakolle, CC0, via Wikimedia Commons]

A week ago, the company management informed the works councils that production of the Audi Q8 e-tron electric SUV is to be completely discontinued earlier than planned, namely at the end of next year. Due to falling demand, production is to be cut back significantly this year. This will result in a drastic reduction in the workforce. “By October, 1,400 or even 1,500 workers could lose their jobs,” said Franky De Schrijver from the Social Democratic General Trade Union Confederation (ABVV) and Ronny Liedts from the Christian Trade Union Union (ACV).

At the beginning of the month, the union representatives on the Audi-Brussels Supervisory Board voted against management’s plans and Supervisory Board Chairman Manfred Döss was only able to ensure a majority for his stance on the Supervisory Board (which has 50-50 management/union representation) by making use of his tie-breaking rights. This is something that hardly ever happens in German supervisory boards because the IG Metall union acts as co-manager in the company economic committees, advising company management and helping draw up closure programmes long before they are announced.

The trade unions in Belgium are no different from IG Metall, but they are under strong pressure from employees. Audi workers in Brussels are very ready to fight. Many workers have a migrant background and know that they have little chance of finding a comparable job. According to a study by the German trade union Hans Böckler Foundation, Belgium is the country in Europe with the most strike days per employee.

To prevent spontaneous action, the shutdown announcement was made during a period of production stoppage. The production lines will remain idle until the Belgian bank holidays on July 21, with the workforce ordered to take compulsory leave. Immediately afterwards, the scheduled company holidays begin. Despite this, 50 workers took part in a vigil in front of the closed factory gates as soon as the planned shutdown was announced.

The works council announced that the “first phase of the so-called Renault Act” would now be initiated. This involves close co-operation between management, the works council, trade unions and the government with the aim of finding a “socially acceptable solution.” The name “Renault Law” comes from the fact that when the Renault plant in Vilvoorde (Flemish Brabant) was closed in 1997, a law was introduced to protect the workforce from sudden management decisions and being presented with a fait accompli.

The law stipulates that a company based in Belgium planning to cut jobs due to restructuring or plant closures must inform the works council and the workforce before announcing the respective steps. Together with the trade unions, a so-called “company council” is formed, which also liaises with government representatives and strives to achieve a balance of interests.

However, similar to German co-determination and social partnership laws, this cooperation between management, trade union and government does not take place in the interests of the workers, but rather serves to shape company decisions with the help of the government in such a way that job cuts can be implemented against resistance from the workforce.

This was made clear by a report on the first round of government talks that took place last Tuesday. Flanderninfo magazine reports: “The unions at the Audi factory in Forest (Brussels) met with outgoing Prime Minister Alexander De Croo (Open VLD) and Economy Minister Pierre-Yves Dermagne (PS) at the Prime Minister’s office on Tuesday.”

The current government, however, is only in office on a caretaker basis. Parallel to the European elections on June 9, elections were held in Belgium for the Chamber of Deputies of the federal parliament, as well as the regional parliaments in Wallonia, Flanders, East Belgium and the Brussels-Capital Region. On this “super election day,” right-wing parties made significant gains and the formation of a government is still continuing.

Nevertheless, trade union officials have praised the government talks. There is “also a political interest” to save “as many jobs as possible” at Audi-Brussels, explained a spokesperson for the Association of Salaried Employees and Technicians (BBTK).

Despite announcing protest actions, trade union representatives have made it clear in the government talks that they are prepared to implement the job cuts. They proposed that older employees be made redundant via the so-called SWT system. This means that the unemployment benefits of those affected are topped up by a company bonus. They also demanded that the government should try to create replacement jobs.

The Audi workers in Brussels must not rely on the trade unions under any circumstances, but must prepare for a principled fight against the plant closure and in defence of all jobs. This requires close co-operation with VW workers in Wolfsburg, Germany and all other sites of the VW parent company.

The decision to shut down Audi Brussels was taken at the company headquarters in Wolfsburg and is part of a far-reaching restructuring programme that involves massive job cuts at many plants. The Wolfsburg-based group includes not only Audi, but also Porsche, Skoda, Seat, CUPRA, Ducati and other brands. No other car manufacturer employs as many workers worldwide as VW. It operates 120 production facilities with 662,000 employees in 19 European countries and 10 countries in the Americas, Asia and Africa.

With an annual turnover of over €250 billion, VW is one of the world’s largest auto manufacturers. Only Toyota has sold more cars in recent years. Despite the coronavirus crisis, supply chain problems and chip shortages, VW has made billions in profits over the last three years.

However, the switch from vehicles with combustion engines to electric cars has intensified the merciless competition between the major car manufacturers for the cheapest labour costs, sales markets and secure supply chains. This is being played out on the backs of workers in all countries and locations, who have to work more and earn less, while hundreds of thousands lose their jobs.

In this transition, the competition, above all with Tesla and the Chinese manufacturers of electric cars, are far ahead of Volkswagen. The days when VW was market leader in China are long gone. The Chinese manufacturer BYD, which already produces exclusively electric vehicles, is systematically expanding its market share and other Chinese manufacturers such as Nio, Geely and Great Wall also sell far more electric autos than Volkswagen.

Sales of the Audi Q8 e-tron, which is the only model built in Brussels and at €80,000 is more than twice as expensive as comparable Chinese models, have fallen sharply.

In addition, the transition from combustion engines to electric cars is being used by corporations and investors to reduce production costs and increase profits. According to a report by the European Automobile Manufacturers Association, half a million autoworkers will lose their jobs by 2040 in Europe alone, including 121,000 in Germany, 74,000 in Italy, 72,000 in Spain and 56,000 in Romania. The Ifo Institute for Economic Research even expects 215,000 jobs to be lost in Germany by 2030, i.e., 40 percent of the country’s autoworkers.

Deepening cuts to jobs and wages in Australia intensify political crisis

Mike Head


New data showing rising unemployment and a steep fall in workers’ real wages expose the fraud of the Albanese Labor government’s claims to be alleviating the cost-of-living crisis, as well as its 2022 election pledge of a “better future.”

New Reserve Bank of Australia governor Michelle Bullock with Prime Minister Anthony Albanese (left) and Australian Treasurer Jim Chalmers July 14, 2023. [Photo: Anthony Albanese Facebook]

These developments, on top of Labor’s support for the US-armed Israeli genocide in Gaza and US militarism against Russia and China, are intensifying the discrediting of the federal and state Labor governments in workers’ eyes.

According to the latest Australian Financial Review/Freshwater Strategy poll, published today, primary voting support for the Labor government has continued to fall to 31 percent, nearly 2 percentage points below Labor’s vote in the 2022 election.

If an election were held today, Labor would be reduced to a minority government, depending on the backing of not just the Greens but various independents. If the trend continues, with a federal election due before May, the widely-reviled Liberal-National Coalition could even form a minority government.

Either way, the result would be a hung parliament and an unstable government under conditions of a worsening economic situation and mounting global war tensions.

Official, vastly understated, unemployment figures released by the Australian Bureau of Statistics (ABS) last week showed the jobless rate, seasonally adjusted, rose from 4 percent to 4.1 percent in June, as part of a rising trend.

By this measure, from May to June, unemployment rose by 9,700, and 95,800 over the year to June. That means an 18.7 percent increase in just a year, taking total number of unemployed workers actively seeking jobs, according to the strict ABS criteria, up to 608,200.

When Labor narrowly scraped into office in May 2022, the official ABS jobless rate was 3.95 percent. By the government’s own budget estimates, this rate will reach 4.5 percent by next year, throwing tens of thousands more workers out of jobs.

The ABS estimate of “under-utilisation,” which includes underemployment—workers looking for more hours of work—has risen to 10.6 percent, or more than 900,000 workers—from 9.5 percent in February 2023.

These figures disguise the impact on self-employed workers or small contractors, particularly those affected by widespread cuts and insolvencies in the construction and mining industries, in which many thousands of jobs have gone since the start of 2024.

Nevertheless, even the ABS data makes a mockery of Treasurer Jim Chalmers’s claim, in response to the statistics, that the Labor government “has ­created more jobs in a parliamentary term than any government in history.”

“We’ve created almost 930,000 jobs since we came to ­office—faster jobs growth than any major advanced economy,” Chalmers said. This figure mostly represents population growth. In June, there were 14.4 million people employed in Australia, compared to 10.6 million in late 2007.

Far from being an exception, Australia—which is heavily dependent on mining exports—is being seriously affected by the global economic slump and ongoing inflationary spiral, especially in the impact on the conditions of the working class.

In its July World Economic Outlook, the International Monetary Fund (IMF) projected global economic growth to remain low, at 3.2 percent in 2024 and 3.3 percent in 2025. For Australia, it downgraded its outlook for 2024 from 1.5 percent to 1.4 percent.

That is well below the Australian population growth rate of about 2 percent. That means income per person is falling, producing what analysts term a “per capita recession.”

On July 9, the Organisation for Economic Co-operation and Development (OECD) reported that in Australia real wages were still 4.8 percent lower than they were in the final quarter of 2019, just before the COVID pandemic. “This is one of the largest drops in real wages among OECD countries,” it stated.

For a worker on a wage of $80,000 a year, that translates into an effective annual pay cut of $3,840. This is the deepest fall in living conditions for decades.

Workers who lost their jobs via corporate sackings suffered steep losses of income. After what the OECD euphemistically called “job displacement,” workers in high-emission sectors, such as coal, in Australia face an earnings loss of 29 percent over six years, with a 25 percent average earnings loss for workers in low-emission sectors.

Losses of jobs and hours of work are greatest in the private sector so far. Data produced by the Commonwealth Bank this month showed that, excluding public administration, healthcare and social assistance, and education and training, total hours worked fell in the past year.

Public sector hours and jobs are likely to fall also over the coming period also as budget cuts to social spending are inflicted by the Albanese government and most debt-riddled state and territory governments, while they pour billions into military spending.

One of the industries already hardest hit is construction. The ABS reported last week that the value of total building work done fell 3.5 percent to $33.4 billion in the first quarter of 2024. Despite a worsening housing crisis, the biggest decline is in residential construction.

Each month across Australia, on average more than 200 construction companies have collapsed, eliminating workers’ jobs, leaving subcontractors and suppliers unpaid and landing consumers with half-built homes or major defects.

Statistics from corporate regulator, the Australian Securities and Investments Commission (ASIC) show that for the current financial year so far, to March 17, there had been 1,987 insolvencies in the building industry. This was up from 1,495 a year earlier and 782 in 2022.

Young workers are particularly affected. This month, an employers’ body, Master Builders Australia, reported a 22 percent drop in construction apprenticeship commencements in 2023. According to the National Centre for Vocational Education and Research, only 41,935 people commenced a building and construction-related apprenticeship in 2023, down from 54,035 a year earlier.

Another employers’ group, the Australian Construction Industry Forum, said residential construction was slowing, “with high levels of bankruptcies with many builders struggling with fixed price contracts and material input costs rising by more than 30 percent over the last two years.”

That highlights the impact of inflation, which is persisting at high levels in Australia and globally. It also points to the employer-government drive to cut pay and conditions in the building industry, which is behind the Labor government’s anti-democratic measures against the Construction, Forestry and Maritime Employees Union (CFMEU).

Job cuts are being unleashed in many industries. That includes telecommunications, where the previously government-owned Telstra, one of Australia’s largest companies by market value, is axing 2,800 jobs, or 9 percent of its remaining 30,000-strong workforce, by the end of 2024.

Mining workers have been hit hard since the start of 2024. Mining conglomerate BHP, the biggest company on the Australian share market, is shedding hundreds of jobs in Australia as part of a cost-cutting restructure of its global operations.

Thousands of jobs have been axed already this year at nickel and lithium mines, mainly across western and northern Australia, and 750 through the closure of Alcoa’s Kwinana alumina refinery south of Perth, Western Australia—all due to the global slump and cut-throat worldwide competition.

In the latest blow, billionaire Andrew Forrest last week abandoned his company Fortescue’s long-held pledge to produce 15 million tonnes of green hydrogen by 2030. He “de-prioritised” several green hydrogen projects, eliminating 700 jobs to “streamline” the business.

Feigning sympathy for workers, Forrest said: “We’re going to sadly lose around 4.5 percent of our direct workforce, 3 percent of our indirect workforce.”

Forrest’s decision also shattered the Labor government’s claims of making the country a hydrogen and “green energy” superpower. In this year’s budget, the government promised $6.7 billion of production tax credits for hydrogen, after already pumping $2 billion of taxpayers’ funds into subsidies for companies like Fortescue.

Labor’s subsidies to hydrogen producers are proving insufficient to make the industry commercially viable, given the intensified global subsidies being offered by other governments, not least in the United States.