Deloitte Access Economics’ latest report highlights the danger of a September snapback and the need for a real plan to grow the economy, create jobs and alleviate the devastation in the labour market.
Millions of workers and thousands of businesses are anxious about being left out and left behind in Australia’s first recession in three decades.
The Morrison Government’s failure to take workers and employers into their confidence about their secret plans for after September has created too much uncertainty and seen businesses shed jobs and push more workers into jobless queues.
The Fast Crisis, Slow Recovery report makes it clear that support should not be rapidly withdrawn in September and that much more needs to be done to promote growth, create jobs and drive down high unemployment:
- “Too much support ends at the same time… we should phase support out where we can.”
- “The risk of damage to the economy if all these stop on a dime is considerable.”
- “Some type of ongoing wage subsidy – a JobTweaker – will be needed too”
- “There can be no ‘mission accomplished’ flags flown until unemployment (and underemployment) is back where it was when the virus hit.”
- “The ranks of the unemployed will be badly swollen for a while.”
Deloitte points out that failure to do more to support the economy is a risk to budget, arguing that “the best way to fix the budget is to fix the economy.”
The less done to protect jobs and support vulnerable workers, business and communities in the coming months, the harder and longer the recovery will be.
Support could be better targeted, or tapered, but it shouldn’t just snapback on an arbitrary timeline which doesn’t reflect the reality in workplaces and communities.
Having introduced support for the economy too narrowly and too slowly, Australians need to know that the Government has a more comprehensive plan to support long-term growth and job creation.
MONDAY, 6 JULY 2020