RBA Minutes released today highlight the escalating jobs crisis facing Australia, with ongoing economic uncertainty putting Australia’s recovery at risk.
 
This is what happens when Scott Morrison lectures anxious Australians about how difficult things are without presenting them with a comprehensive plan for jobs and the recovery.
 
The Minutes emphasise a loss of momentum in the labour market, and point out this is not confined to Victoria and has been made worse by ongoing uncertainty about Australia’s economic future.
 
The Reserve Bank stated that:

• “Turning to the labour market…there was a loss of momentum in late June and the first half of July. This was most evident in Victoria, but could also be seen across the other states.”
• “the contraction in activity and employment was the result of expected weakness in demand and general uncertainty, in addition to restrictions on activity.”
• “Uncertainty about the health situation and the future path of the economy was continuing to affect the spending plans of many households and businesses.”
• “the recovery in employment would be slower than earlier assumed”

 
The RBA reiterated that “fiscal and monetary support would be required for some time given the outlook for the economy and the labour market.”
 
The most important test of the Morrison Government’s management of the recession and its aftermath is what happens to jobs and the businesses which create them.
 
Vulnerable workers, businesses and communities need and deserve a plan from the Morrison Government to promote growth, protect and create jobs, support business and set Australia up for the recovery.
 
We can’t afford to see more Australians in Victoria and elsewhere left out and left behind in this first recession in 30 years because the Government is not prepared to respond with a proper plan.
 
TUESDAY, 18 AUGUST 2020