Cutting unemployment benefits by $50 a week will take about $5 billion out of the economy in the coming year. That’s not good news for jobs.
The Morrison Government today finally announced an increase in the permanent rate of JobSeeker. But still unemployed Australians are being asked to live well below the poverty line.
Australia is in for a long and damaging economic slump, unless governments inject substantially more fiscal stimulus.
2.7 million people either lost their jobs or lost hours of work in April. The unemployment rate doesn’t capture the scale of COVID’s effect on jobs.
The March labour force data will report on a jobs market that sadly no longer exists – the Australia before widespread spatial distancing and shutdowns of non-essential businesses.
Policy makers need timely information to decide whether economic stimulus might be required. A new indicator based on the unemployment rate can help.