Invest
Economic recovery ‘well underway’ as 2m Aussies drop off JobKeeper
More than 2 million Australians have left the JobKeeper wage subsidy scheme, which the government pointed out as a sign that the economic recovery is well underway.
Economic recovery ‘well underway’ as 2m Aussies drop off JobKeeper
More than 2 million Australians have left the JobKeeper wage subsidy scheme, which the government pointed out as a sign that the economic recovery is well underway.
The number of JobKeeper recipients has fallen from 3.6 million to 1.5 million in less than two months, outperforming predictions in the federal budget.
“These latest JobKeeper numbers are very encouraging,” Treasurer Josh Frydenberg said to the media.
“Australia is certainly performing far better than so many other nations around the world both on the health front and also on the economic front.”
However, the Morrison government has tightened eligibility and reduced the payment rate over the last quarter.
The JobKeeper wage subsidy fell from $1,500 to $1,200 a fortnight at the end of September and is due to fall to $1,000 from January to March, when the scheme is scheduled to end.
Despite trending in the right direction, the Treasurer said “that the road ahead will be hard, it will be bumpy, it will be long”.
“There will be some businesses that don’t make it and some jobs that cannot be saved. But it’s our analysis the unemployment rate will come down next year and the year ahead even after JobKeeper comes off at the end of March,” he said.
The Treasurer also pointed out the current trade issues with China are hurting both countries’ recovery.
“This is a challenging time, with Australia’s largest trading partner in China. But it is a mutually beneficial relationship. China benefits greatly from Australia’s iron ore, which underpins its economic growth.”
“So, we will obviously work through these issues,” Mr Frydenberg concluded.
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