Invest
Treasury expects 10% unemployment
Speaking at Parliament House today, Treasurer Josh Frydenberg has outlined just how much of a drag COVID-19 could have on the nation’s workforce.
Treasury expects 10% unemployment
Speaking at Parliament House today, Treasurer Josh Frydenberg has outlined just how much of a drag COVID-19 could have on the nation’s workforce.
He conceded that “the economic shock facing the global economy from the coronavirus is far more significant than what was seen during the global financial crisis over a decade ago”.
The Treasury’s newest calculations have led it to expect the unemployment rate to rise to 10 per cent in the June quarter, from 5.1 per cent in the most recent data.
He also conceded that the unemployment percentage hike is likely to last as long as health restrictions remain in place.
According to Mr Frydenberg, in the absence of the $130 billion JobKeeper payment, which was approved by Parliament last week, Treasury has also estimated that the unemployment rate would be five percentage points higher – peaking around 15 per cent.
“The JobKeeper package is providing an economic lifeline to millions of Australians,” Mr Frydenberg said.
“At $130 billion, it’s a wage subsidy the size, scale and scope of which Australia has never seen before.”
“The unemployment rise is very concerning, but it’s also a reflection of the economic challenges we face.”
“Our ultimate focus is to keep people working,” the Treasurer acknowledged.
He highlighted that more than 800,000 businesses have already registered for the JobKeeper payment, “which will allow the economy to recover more quickly once we are through to the other side of the crisis”.
More to come.
RELATED ARTICLES
About the author
About the author
Economy
Inflation dip welcomed, but employers remain cautious, says JobAdder CEO
As the Australian Bureau of Statistics (ABS) released its latest Consumer Price Index (CPI) figures today, revealing a dip in inflation, industry leaders are cautiously optimistic. However, this ...Read more
Economy
Inflation eases slightly as fuel prices drop, but other pressures remain
Australia's inflation landscape experienced a slight reprieve in April, according to the latest Consumer Price Index (CPI) data released today. The figures reveal that annual inflation has edged down ...Read more
Economy
April inflation report shows mixed signals for Australia's economic outlook
Australia's latest Consumer Price Index (CPI) data has sparked a flurry of analysis from economic experts, revealing a complex picture of the nation's inflationary landscape. State Street, a global ...Read more
Economy
Unemployment rises as job creation declines, says JobAdder CEO
In a revealing analysis of the current job market, Martin Herbst, CEO of JobAdder, has provided insights following the release of the latest Labour Force Data from the Australian Bureau of Statistics ...Read more
Economy
Labour force data reveals unexpected unemployment rise, says State Street economist
In a surprising turn of events, the latest Labour Force data has revealed a significant rise in unemployment, exceeding expectations and signalling a potential shift in the labour market narrativeRead more
Economy
Australian Made Week highlights the importance of local manufacturing in economic resilience
The spotlight is on Australia's manufacturing sector during Australian Made Week, held from May 18 to 24, as business and government leaders emphasise the need to bolster local capabilities, fortify ...Read more
Economy
Federal Budget introduces sweeping changes to tax, investment, and health care sectors
In the wake of the Federal Budget announcement last night, significant reforms are set to reshape the financial landscape for Australians, touching on everything from tax deductions to superannuation ...Read more
Economy
Hot US inflation leaves Fed’s new chair Warsh cornered on rates: deVere CEO
In a climate of escalating inflation and geopolitical tensions, the newly appointed Chair of the Federal Reserve, Kevin Warsh, finds himself in a precarious position regarding interest rate ...Read more
Economy
Inflation dip welcomed, but employers remain cautious, says JobAdder CEO
As the Australian Bureau of Statistics (ABS) released its latest Consumer Price Index (CPI) figures today, revealing a dip in inflation, industry leaders are cautiously optimistic. However, this ...Read more
Economy
Inflation eases slightly as fuel prices drop, but other pressures remain
Australia's inflation landscape experienced a slight reprieve in April, according to the latest Consumer Price Index (CPI) data released today. The figures reveal that annual inflation has edged down ...Read more
Economy
April inflation report shows mixed signals for Australia's economic outlook
Australia's latest Consumer Price Index (CPI) data has sparked a flurry of analysis from economic experts, revealing a complex picture of the nation's inflationary landscape. State Street, a global ...Read more
Economy
Unemployment rises as job creation declines, says JobAdder CEO
In a revealing analysis of the current job market, Martin Herbst, CEO of JobAdder, has provided insights following the release of the latest Labour Force Data from the Australian Bureau of Statistics ...Read more
Economy
Labour force data reveals unexpected unemployment rise, says State Street economist
In a surprising turn of events, the latest Labour Force data has revealed a significant rise in unemployment, exceeding expectations and signalling a potential shift in the labour market narrativeRead more
Economy
Australian Made Week highlights the importance of local manufacturing in economic resilience
The spotlight is on Australia's manufacturing sector during Australian Made Week, held from May 18 to 24, as business and government leaders emphasise the need to bolster local capabilities, fortify ...Read more
Economy
Federal Budget introduces sweeping changes to tax, investment, and health care sectors
In the wake of the Federal Budget announcement last night, significant reforms are set to reshape the financial landscape for Australians, touching on everything from tax deductions to superannuation ...Read more
Economy
Hot US inflation leaves Fed’s new chair Warsh cornered on rates: deVere CEO
In a climate of escalating inflation and geopolitical tensions, the newly appointed Chair of the Federal Reserve, Kevin Warsh, finds himself in a precarious position regarding interest rate ...Read more
