Australia is set to suffer through a ‘second wave’ of job losses with more than 640,000 people to be sacked in the coming months – so is your job safe?
- Hundreds of thousands of jobs could go as government winds back stimulus
- Retail and construction expected to be hardest hit in second wave of job losses
- Construction industry said consistent with losses they are anticipating in future
- Finance Minister has left option open to extend JobKeeper if need to reassess
The government’s decision to wind back JobKeeper could see up to 640,000 jobs lost in the next eight months due to Australia’s second wave of coronavirus infections.
About 330,000 positions could be stripped from the retail and construction sectors as the country battles a second wave of unemployment, according to consulting firm McKinsey.
Figures, given to The Australian, show the jobs will be azed between now and March next year.
Consulting firm McKinsey predicted job losses from the retail and construction sectors and warned it could result in a ‘second wave of unemployment’ nearly as large as the first
Federal Treasurer Josh Frydenberg has called out Victorian Premier Dan Andrews (pictured) for ‘significant failures with deadly consequences’ during the coronavirus pandemic
Bourke Street Mall (pictured) in Melbourne during stage 4 restrictions which saw the majority of major retailers forced to close, 42,000 retail jobs have already been cut during pandemic
The lowest projection is 270,000, which means the economic impact of COVID-19 could be felt for a decade.
Victorian Premier Dan Andrews has faced multiple calls for his resignation over the state’s handling of the second coronavirus wave and the hotel quarantine outbreaks.
On Monday federal Treasurer Josh Frydenberg said ‘mistakes must be explained’.
“We know with respect to quarantine, there have been very significant failures with deadly consequences. Victorians deserve answers. I’ll leave that to Daniel Andrews and his government to provide.”
The McKinsey data shows losses in the construction sector could be up to 205,000 by March next year if the government assistance is cut back as expected and a ‘prolonged recovery’ sets in.
The CFMEU confirmed they are anticipating that type of loss if the government doesn’t implement serious stimulus measures such as social and affordable housing.
Victoria’s stage 4 restrictions mean only one person per household is allowed out to shop once a day and only essential retail outlets can open including including supermarkets, chemists, petrol stations and bottle shops.
Major department stores and retailers have to remain closed for the remainder of stage 4 restrictions but can offer online shopping.
The retail industry has lost 42,000 jobs due to the coronavirus so far this year and could lose another 215,000 according to McKinsey.
The McKinsey report shows losses in the construction sector could be up to 205,000 by March next year if the government assistance is cut back and a ‘prolonged recovery’ sets in
Major department stores in Sydney still haven’t re-opened some of their locations as they face a major drop in sales due to coronavirus, the industry could face another 215,000 job losses before March
Police officers (pictured) in Victoria patrol the streets during the state’s stage 4 coronavirus lockdown with a curfew for residents from 8pm to 5am
Major department stores in Sydney still haven’t re-opened some of their locations as they face a major drop in sales due to coronavirus.
The JobKeeper payment was originally due to run until 27 September this year but the Treasurer has extended it for eligible businesses until March 28.
Under the changes the payment has been reduced from $1500 per fortnight to $1200 from September 20 and will drop to $1000 from January 4.
Finance Minister Mathias Cormann told the ABC on Sunday that JobKeeper payments could change again in the future.
‘If facts change, we’ll reassess what may or may not be appropriate at the time.’
Victoria’s stage 4 restrictions mean only one person allowed out to shop per household, once a day and only essential retail outlets open including supermarkets, chemists and bottle shops