The Reserve Bank’s latest Statement on Monetary Policy highlights the enormous scale of the jobs crisis facing Australia, with unemployment forecast to remain higher for longer.
 
With up to 400,000 more Australians expected to lose their job before Christmas, Australians need and deserve a plan to tackle the jobs crisis that is only getting worse.
 
The RBA is now expecting a weaker recovery with unemployment expected to reach 10 per cent this year and remain unacceptably high over coming years.
 
The Statement highlights the disastrous decision by the Government to exclude too many casual workers from the JobKeeper program, and the severe costs of delaying policy action to bolster the recovery.
 
According to the Statement:

• “Around two-thirds of the jobs lost in April and May were casual jobs. This reflects the large share of casual workers in hospitality-related industries, as well as some restrictions in casual workers’ eligibility for JobKeeper payments.”
• “The longer the economy remains weak, the more households and firms will suffer severe financial stress… These stresses could slow the recovery further and increase the chance of labour market scarring for many workers.” 
• “the emphasis of government support measures in some advanced economies has begun to extend beyond household transfer payments to directly stimulating aggregate demand through public consumption and investment. More generally, at a time of significant spare economic capacity and low interest rates, a sustained period of expansionary fiscal policy – aimed at stimulating aggregate demand both indirectly and directly – will be important in keeping the global recovery on track.”

 
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.
 
Australians have made enormous sacrifices during this crisis and they need and deserve a plan to protect and create jobs and set the country up for a strong 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.
 
FRIDAY, 7 AUGUST 2020