Australia’s unemployment has fallen to its lowest level in 10 years, but there are challenges ahead of the blockade

The long-term blockade in Sydney and the fifth blockade in Melbourne have recovered Australia’s economic recovery, despite Australia’s unemployment rate dropping to 4.9% in June, the lowest since December 2010. I cast a shadow on power.

According to ABS data The number of unemployed, announced on July 15, fell by 22,000 to 679,000, down from 5.1% in May.

The decline in the unemployment rate is consistent with a further rise in the employment rate, with the number of employees increasing by more than 29,000 and just over 13 million. Full-time employment also increased by 51,600, but was partially offset by a decrease of 22,500 part-time workers.

Bjorn Jarvis, head of labor statistics at ABS, said the latest data reflect the current dynamics of the labor market.

“The decline in unemployment continues to be consistent with employers reporting high levels of jobs and the difficulty in finding the right people for them,” he said.

Youth unemployment has also improved, dropping 0.5 points to 10.2%, the lowest level in 12 years.

However, not all indicators are positive.

The underemployment rate rose 0.5 points to 7.9%. This means that more people are willing to work more time, but they can’t.

Treasury Secretary Josh Frydenberg said on July 16 that the latest employment data shows the strength and resilience of the national economy, but acknowledged that the latest blockade poses challenges for a new economic recovery. It was.

“We have never been out of this pandemic,” Frydenberg said.

Economists say blockades do little harm, despite the impact on small businesses

Hobart-based independent economist Sole Eslake said the total cost of the blockade of Sydney and Victoria could reach up to $ 1.5 billion a week, equivalent to a weekly loss of about 3.75 percent of GDP. I’m estimating. Assuming the blockade of Sydney ends by July 30th and the blockade of Victoria ends by July 21st, the total cost will be about 1 percent of GDP.

“It may be enough to generate negative numbers for third-quarter GDP growth,” he told The Epoch Times on July 17. Nevertheless, he is convinced that the Australian economy is resilient.

“Last year’s experience shows that these losses are likely to improve when the blockade ends. Therefore, if the third quarter is negative, the fourth quarter is reasonably better than otherwise. You will be stronger, “he explained.

Eslake also said the blockade could disrupt the downturn in unemployment, but its impact could be limited. This is because employers may choose to reduce working hours while keeping workers on salary.

Richard Holden, a professor of economics at UNSW Business School, supported the government’s stance on blockades and said the focus should be on “the cost of the virus, not the cost of the blockade.”

“The problem is the fact that the Delta strain occurred in most unvaccinated populations,” he told The Epoch Times.

Holden believes that the government’s $ 5 billion support package should help businesses and families recover.

But Angela Vitourkas, a Sydney city council member and former small business owner, has a different view.

She says the blockade of Greater Sydney caused catastrophe for small businesses and pushed their economic and emotional stress levels to the limit.

“The small business community I’m talking about every day is devastated by this latest blockade, how it’s handled, and how we got here,” she emailed on July 15. I told the Epoch Times.

Vithoulkas said the New South Wales government could have prevented the latest outbreaks if it had better security systems and protocols in place.

“Every business owner knows you have to prepare for a disaster, but even if they have 18 months to learn from it, our government doesn’t seem to understand this.” She said.

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