Read The Times Australia

Daily Bulletin

Victorians struggle to exit JobKeeper, as the scheme's end looms

  • Written by: Michelle Grattan, Professorial Fellow, University of Canberra

As JobKeeper enters its final weeks, the government has released the latest Tax Office breakdown of the numbers coming off the program, amid concerns its end in late March will see a rise in unemployment.

With attention currently on Victoria, in a five day lockdown due to a COVID outbreak that started with a hotel quarantine breach, the JobKeeper numbers underline the impact of that state’s long lockdown last year.

In Victoria about 1.1 million workers received JobKeeper in its first phase, which ran from April to September, falling to 626,000 in the second phase, October to December.

This was a reduction of just 44%, substantially less than the declines in every other state and territory.

Elsewhere the falls between the two phases were: NSW, 60%; Queensland, 64%; South Australia, 67%; Western Australia, 70%; Tasmania, 65%; Northern Territory, 69%; and ACT 62%.

The figures included substantial reductions in various regions with a reliance on tourism, despite the problems faced by that industry.

Some 18% of the Victorian pre-COVID workforce was on JobKeeper in the second phase, substantially above the proportions in other states and territories.

Nationally, 1.54 million individuals were being supported by the program in the month of December. This compared with 3.6 million in the month of September.

The number of employees on JobKeeper in the month of December fell 65,000 compared to November. In November there had been a fall of 30,000 compared with October.

There was a 56% fall in employees on JobKeeper in its second phase compared with its first phase. Some 520,000 firms and 2.13 million employees went off the scheme after the end of September.

Reserve Bank Governor Philip Lowe has anticipated some job shedding after JobKeeper ends. This could cause brief rises or slower falls in unemployment, he said this month. He advocated an increase in the JobSeeker base rate, on fairness grounds. The government has yet to announce its long term plans for JobSeeker, but there is general support for it not going back to the old rate after the Coronvirus supplement ends.

ACTU Secretary Sally McManus told the ABC on Sunday JobKeeper should be extended for those businesses still affected by COVID.

Releasing the latest figures, Treasurer Josh Frydenberg said with 785,000 jobs created in the last seven months, the government’s focus “continues to be getting people back into work”. But “we know that some families and businesses are still doing it tough and my message to those people is that the Morrison government continues to have your back.”

All industries saw marked reductions in employees on JobKeeper in the December quarter, compared with its first phase, with most falling by at least half.

Victorians struggle to exit JobKeeper, as the scheme's end looms Average number of employees receiving a JobKeeper 1.0 payment over April to September, versus average number of employees receiving a JobKeeper 2.0 payment over October to December, by selected industry. Treasury

Retail trade saw a 68% decrease, taking those on the support from an average of 26% of the workforce over the first phase to 8% over the second phase.

In accommodation and food services the fall was 52%, to 17% of the workforce in phase two.

Education and training saw a 50% fall, to 6% of the workforce.

Other declines between phases were: wholesale trade, 71% (to 12% of the workforce), construction 48% (to 18%), transport, postal and warehousing 36% (to 17%).

The government insists it will not extend the program although it will look at further assistance where there is a particular need.

The JobKeeper figures come as Health Minister Greg Hunt said the first doses of vaccine will arrive from overseas “before the end of the week, if not earlier”, and Victoria announced two new local cases and another one in hotel quarantine.

At the front of the queue to get the vaccine will be quarantine and border workers, as well as aged care residents and staff.

Hunt said once the vaccines arrived they would be examined to make sure there hadn’t been “any inflight actions that damage quality such as a loss of temperature”.

Victorians struggle to exit JobKeeper, as the scheme's end looms Total number of employees receiving a JobKeeper 1.0 payment over April to September, versus total number of employees receiving a JobKeeper 2.0 payment over October to December, by selected region. Treasury

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more https://theconversation.com/victorians-struggle-to-exit-jobkeeper-as-the-schemes-end-looms-155288

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...