Read The Times Australia

Daily Bulletin

Why coronavirus will deepen the inequality of our suburbs

  • Written by: Carl Grodach, Professor and Director of Urban Planning & Design, Monash University

COVID-19 and the growing recession concentrated in the services sector will not just increase social inequality, but accelerate the growing spatial divide in our cities. As our new research report shows, the pandemic’s impacts reinforce the ongoing trend towards the suburbanisation of inequality.

There are two reasons for this. First, the industries vulnerable to the economic impacts of COVID-19 lockdowns rely heavily on low-wage, part-time employment. Second, the inner suburbs are home to the largest concentration of COVID-vulnerable workers.

Read more: Rapid growth is widening Melbourne's social and economic divide

If we do not act now, more people will get pushed out of inner areas rich in jobs and amenities to lower-cost outer suburbs with poor access to jobs and community services.

Which industries and workers are vulnerable?

Our research analyses where people employed in the industries most vulnerable to COVID-19 lockdowns live and the kind of work they do. We map vulnerable employment areas in all suburbs of Australia’s five largest capital cities. We then examine the characteristics of people in vulnerable employment living in all suburbs of Australia’s current coronavirus hotspot, metropolitan Melbourne.

We define vulnerable employment based on a detailed review of industries with one-third or more firms reporting reduced worker hours one week after the first COVID-19 lockdown (March 30 2020). These firms are mainly in the consumer, travel and community services sectors. They employ people working in accommodation and food, arts and entertainment, education, “non-essential” health care, retail and transport.

Read more: How the coronavirus recession puts service workers at risk

We profile the characteristics of vulnerable workers in each of these sub-industries and by suburb. We classify suburbs (using SA2 level data from the Australian Bureau of Statistics) by share of vulnerable employment based on the worker’s place of usual residence.

Many at-risk workers live in inner suburbs

As the map below shows, the largest shares of vulnerable workers live in Melbourne’s inner suburbs.

Why coronavirus will deepen the inequality of our suburbs Source: ABS (2016) Census data, by place of residence at SA2 level. Map by Declan Martin and Alexa Gower, Author provided Vulnerability levels clearly diminish moving outward from the city centre. In other words, many vulnerable workers live in some of the highest-rent suburbs. On average, the share of vulnerable workers in the very high vulnerability suburbs is 32.2% of employed residents. The figure exceeds 40% in some of these areas. Workers likely to be forced to move Living in the inner suburbs, combined with the nature of their jobs, puts many COVID-vulnerable workers at high risk of displacement. In the very high vulnerability suburbs, 47% of vulnerable workers are on low or very low incomes. And 54.3% work part-time (less than 38 hours a week). A large proportion (41.9%) are aged under 30 and about one-third are 30-44. In fact, over half (53.5%) of the vulnerable workforce living in very high-vulnerability suburbs hold jobs in the most precarious, low-wage consumer services industries – accommodation and food services and retail and personal services. Another 30% work in arts, entertainment and education. Suppressed consumer demand will not only have short-run employment impacts, but might permanently alter consumption patterns. The result would be enduring business closures and job losses for workers who live in these areas. To make ends meet, many of those facing job loss and other employment pressures such as reduced hours will seek more affordable housing in the middle and outer suburbs. However, although the outer areas are now home to the smallest proportion of vulnerable workers, the vulnerable workers that live there tend to be worse off. Just over 66% are on low or very low incomes and 60% work part-time. As a result, the migration of COVID-vulnerable workers to the outer areas will add to the existing concentration of spatial inequality in Greater Melbourne. Why coronavirus will deepen the inequality of our suburbs Source: ABS 2016 Census data, by place of residence at the SA2 level, Author provided Read more: Private renters are doing it tough in outer suburbs of Sydney and Melbourne What can be done about this? COVID-19 puts people working in low-end service jobs and the creative and educational services at high risk of losing their jobs. Those who manage to live in the high-cost inner suburbs are now particularly vulnerable. Read more: Coronavirus: 3 in 4 Australians employed in the creative and performing arts could lose their jobs It is therefore crucial to expand rather than retract the JobKeeper and JobSeeker programs. Proposed cuts to JobSeeker are estimated to push 370,000 Australians into poverty, 123,000 in Victoria alone. In tandem, we need interim policy in the rental housing market to defuse the impending “rent bomb” of tenants facing eviction if they can’t pay the accumulated debt of deferred rent. Longer-term strategies are also needed. We must confront the reality that many service sector jobs will not return. This requires investment in skills-building courses tied to strengthening the recovery of TAFEs and universities, particularly in areas like “essential manufacturing” – medical supplies, recycling, food – and communications technologies. JobTrainer is a good start. Given the spatial dimensions of the crisis, place-based programs are crucial too. Preserving inner suburban industrial land can play a significant role in small enterprise start-ups, firm expansion and job creation. Inner industrial districts provide a flexible mix of space that allows businesses to grow and add quality jobs in place. Read more: Three ways to fix the problems caused by rezoning inner-city industrial land for mixed-use apartments At the same time, policymakers can better develop community infrastructure and employment hubs in the outer suburbs. Community hubs provide flexible, multipurpose spaces that cater to various community needs. These services range from youth, aged care and health facilities to collaborative workspaces and settings for workforce training providers. While COVID-19 is clearly taking an immediate toll on the health and economies of our cities, we need a conversation about the longer-term impacts and responses.

Authors: Carl Grodach, Professor and Director of Urban Planning & Design, Monash University

Read more https://theconversation.com/why-coronavirus-will-deepen-the-inequality-of-our-suburbs-143432

Business News

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Microsoft Surface For Business (Microsoft 365 E3, E5, E7) And Modern Workplace Requirements

Understanding Business Device Requirements Microsoft surface for business (microsoft 365 E3, E5, ...

Choosing the Right Split System for Melbourne Homes

Why Split Systems Suit Melbourne Conditions Choosing a heating and cooling system starts with und...

What Happens to Remaining Sperm Stored in the Vas Deferens After the Procedure

Deciding to undergo a permanent contraceptive procedure is a significant life step for many men. Whe...

Top Tips on Combining TMS Therapy with Comprehensive Adult ADHD Care in Sydney

Managing attention-deficit hyperactivity disorder (ADHD) alongside co-occurring mental health condit...

What To Expect Before, During, And After Laser And CRP Hair Loss Treatments

Hair thinning affects millions of Australians, leading many to seek advanced, non-surgical solutions...

What To Ask During A Consultation For Men's Hair Loss Treatment And PRP

Walking into a clinic to address thinning hair can feel daunting, but preparation builds confidenc...

How to Ensure Safe and On-Time Building Material Delivery with Sydney Cargo Transportation Services

Managing a construction site requires precise coordination, where even a minor delay can stall an en...

What to Ask Your Cosmetic Surgeon About Liposuction and Thigh Lift Reduction in Perth

Establishing the Surgeon’s Credentials and Local Experience Your safety depends heavily on the cred...

Top Ergonomic Tips to Enhance Your Neck Pain Treatment and Prevent Back Pain In Sydney

Many office workers in New South Wales spend upwards of eight hours a day hunched over a keyboard, l...