~**pRiNcEsS diAriEs**~

went to Gems Consulting for an interview today.. this is for a graduate managment consultant position.. as usual, I have my interview stories to tell :p

the interview with the guy went ok... :)
then the woman came in.. and i guess i wasnt really expecting to be interviewed again and so in the beginning i kept beginning my sentences with "as i was telling jonno ... ".. i don't think she liked it...

then came the critical question:

Her: so do you know what the current unemployment rate in Australia is?

Me: 7%

Her: No, its 4.6%. it’s the lowest in Australia it has always been

Me: but its 7% for graduates

*I didn’t say this but coz my thesis briefly touches on grad unemployment and labour makets that is why I know*

Her: No! its 4.6%, it’s the lowest in Australia as it has always been

*by now im thinking she didn’t’ hear what I said about graduates.. contemplating repeating my point but decided against it because she seemed quite insistent*

Me: Oh ok, that’s really low.

Her: Yes, it’s really low. The lowest in Australia as it has ever been. So what impact do you think this has on the government and house prices?

Me: *pauses and thinks* well, it means that the economy is doing well seeing that unemployment is so low which means spending would be high because of the whole GDP equation.. I think there would be upward pressure of prices and you might have to increase the interest rate or inflation might reach an unhealthy level…

Her: Yah, but the growth is mainly from Western Australia and Brisbane.. if you increase interest rates it will affect the whole of Australia..

Me: Yes, but its ridiculous if house prices keep soaring, petrol prices keeps soaring, its unhealthy for the economy and if first home-owners were to buy houses then it would be way out of their budget. So interst rates would still have to increased, for example, at least house prices in Sydney have stabilized.

Her: Increaseing the house prices would indeed lower house prices because owners who once could afford a $400 000 house now can only afford a $300 000 house.

Me: yeh, exactly

Her: the thing about employment in Australia is that it is mostly driven by immigrants. There is a shortage of skills in Australia and if we keep getting more people in then it is also not good for the local employment…

(she wanders off into her little argument about what the government is debating about)

*I nodd, look interested and agree with her*