Should JobMaker target all workers?

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October 15 2020
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The Morrison government’s JobMaker program, which targets those under 35, could hurt job prospects and the economic recovery of older Australians, a research group has said.

The JobMaker Hiring Credit provides businesses that hire an unemployed person aged 16-29 with a $200 weekly wage subsidy, which reduces to $100 per week for hiring people aged 30-34.

According to unemployment figures released by Roy Morgan, 1.83 million Australians are now unemployed, with a further 1.33 million currently underemployed.

Roy Morgan said there are 1.29 million Australians aged 35+ who are either unemployed or underemployed that will be disadvantaged by the JobMaker Hiring Credit that incentivises businesses to hire younger workers aged under 35.

“This large cohort of unemployed Australians risks being ‘frozen out’ of employment opportunities as businesses opt to employ younger, cheaper and less experienced workers at their expense – and collect significant wage subsidies to do so,” Roy Morgan CEO Michele Levine said.

“In its efforts to get the Australian economy ‘moving’ again as it slowly opens up – at least on a domestic level – over the next few months the federal government must be careful not to disadvantage large numbers of workers who have lost their jobs through no fault of their own.”

The researcher pointed out that this will have a larger impact on Victoria and Queensland due to the age of the population that is unemployed.

“This policy will have an outsized impact on Victoria and Queensland, which both have far higher rates of unemployment among those aged 35+ than New South Wales,” Roy Morgan stated.

“Locked-down Victoria had 185,000 workers aged 35+ unemployed in September followed closely by Queensland (170,000 unemployed workers). Given the larger population, the 150,000 unemployed workers aged 35+ in New South Wales is a relatively ‘good’ result compared to its two neighbours.”

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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