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.