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- As the upcoming federal budget looms and JobSeeker and JobKeeper payments await their trim, the future of Australian unemployment is still uncertain
- Economists are predicting the Australian unemployment rate may not be as bad as expected back in July
- Now, with the upcoming budget expected to record a $200 billion deficit, all eyes are on job creation to help pull Australia out of recession
- Just this weekend, the Federal Government announced a $1.5 billion deal with the City of Perth to build university facilities in the city centre
- This deal is expected to create 10,000 jobs for Western Australian residents alone
- On top of this, tax cuts, gas market overhauls, and construction support are all expected to support future jobs in a post-COVID world
As the upcoming federal budget looms and JobSeeker and JobKeeper payments await their trim, the future of Australian unemployment is still uncertain.
Unemployment has been tipped to peak around nine per cent by Christmas this year before gradually declining over the next several years.
Yet, recent jobs figures showed an unexpected improvement in unemployment over August, with the jobless rate tipping from 7.5 per cent to 6.8 per cent despite tight Victorian lockdowns.
Now, some economists are rethinking their initial unemployment predictions. Westpac’s Chief Economist Justin Smirk said the Christmas peak of more than nine per cent is now in “serious doubt” as the Federal Government extends fiscal support for struggling Australians.
On the other hand, UBS economist George Tharenou has suggested the ongoing support is just extending the inevitable and unemployment will peak in 2021. He said this peak, however, will likely be below nine per cent.
So, with the upcoming budget expected to record a whopping $200 billion deficit as the government tries to pull the nation out of recession, how will new jobs be supported?
JobMaker to support the arts
Part of the plan to get out-of-work Australians back in the field is the major JobMaker plan revealed in June.
The key target of the plan is the embattled arts sector, but with the entertainment support will come an array of potential jobs, including those in construction, service, hospitality, and, of course, performing arts.
“This package is as much about supporting the tradies who build stage sets or computer specialists who create the latest special effects, as it is about supporting actors and performers in major productions,” Prime Minister Scott Morrison said back in June.
The key areas of focus for JobMaker have been outlined as support for events businesses to put on festivals, concerts, and tours, show starter loans, film and television production support, and arts and culture organisations.
The City of Perth deal
Falling under the JobMaker umbrella is a billion-dollar partnership between the Federal Government and the City of Perth to create 10,000 jobs and “revitalise” the city centre, announced over the weekend.
The Federal and State governments have teamed up with Perth’s Edith Cowan University to move the education facility’s Business and Law Schools and the Western Australia Academy of Performing Arts (WAAPA) to the city centre.
Curtin University and Murdoch University will also be establishing a stronger presence in Perth city through extra campuses and an eSport Stadium.
Cycling paths and public transport facilities will be upgraded to support the new developments.
“This is a JobMaker investment which will generate employment for thousands of hard-working West Australians, it will boost those businesses that are already in the CBD and it will drive new businesses to open,” the Prime Minister said yesterday.
Tax slash, energy splash, building cash
Also contributing to the expected $200 billion deficit are tax cuts, construction support, and a gas industry overhaul.
A string of income tax cuts originally slated for 2024 is now expected to be announced as part of the upcoming budget.
The tax-cut plan was outlined in 2019 and is designed to inject some more cash into the economy by letting higher-earning Aussies keep more of their cash. Those earnings over $120,000 per year are set to save over $2500 a year on taxes, with the savings shrinking incrementally the less a worker earns.
This month, the Prime Minister has announced a plan to drive electricity prices down by revamping the gas industry. More gas will be available through the unlocking of five key gas basins across the country, while the government will work to streamline Australia’s domestic supply chain.
Furthermore, the government will also establish an Australian Gas Hub to act as a central market for the fair pricing and supply of LNG.
On top of all this, it’s expected the HomeBuilder construction package will be extended to provide further support for building jobs.
