Half-a-million Australian jobs could be lost in the coming weeks as the coronavirus takes a stranglehold on the economy – with hospitality workers, travel agents and airline employees the first on the chopping block.
Despite the panic-buying hysteria sweeping through supermarkets across the country, COVID-19 has sparked a huge downturn in consumer spending.
Casual workers have had their shifts slashed, while employees in customer-based roles face an uncertain future with crowd events banned and social distancing measures in place.
More than two million Australians are employed casually, mostly in the hospitality, retail and tourism industries, all of which have entered uncharted territory.
Council of Small Business Organisations Australia CEO Peter Strong predicts about 500,000 will be forced out of work as a direct result of the coronavirus.
The tourism sector, still reeling from the bushfire crisis, is grappling with coronavirus travel bans and a 14-day self-isolation period for anybody arriving in Australia.
International visitor numbers have plunged and would-be holidaymakers have cancelled their flights in droves.
Adelaide-based travel agent Holly Velardo broke down in tears revealing she didn’t know where her next pay cheque will come from.
Adelaide-based travel agent Holly Velardo cried as she said she doesn’t know where her next pay cheque will come from
‘When airlines and operators are offering full refunds, it means we’re offering refunds as well, so we’re working for absolutely no money,’ she told 9 News.
‘Now I have nothing, so it’s very scary.’
Ms Velardo said she applied for a series of casual jobs to try and make ends meet.
Federal Tourism Minister Simon Birmingham said the coronavirus crisis was an ‘incredibly difficult time’ that could see almost eight per cent of workers out of a job.
‘One in thirteen Australian jobs rely on the tourism and hospitality sector and those employers, those businesses and those jobs are all on the line right now,’ he told The Australian.
‘Ultimately, we’re not going to be able to save every single business or every single job either. This is a terrible, terrible event that we’re dealing with. It’s something that has never been encountered before.’
While casual employees normally don’t have the same holiday and sick leave entitlements as their full-time and part time counterparts, Attorney-General Christian Porter successfully campaigned to amend the rules in the face of the crisis.
Accordingly, casual workers who have been forced out of their jobs due to COVID-19 will get support through the welfare system.
Prime Minister Scott Morrison and Treasurer Josh Frydenberg are working to give financial aid to at-risk businesses.
One of the industries hardest hit by the coronavirus crisis is hospitality (stock image)
A $715m package to help Qantas and Virgin Australia will be announced on Wednesday.
Qantas boss Alan Joyce announced a 90 per cent cut to international flights and a 60 per cent reduction to domestic flights.
He described the coronavirus crisis as the ‘single biggest shock’ in the history of Australian aviation.
The Morrison government is also considering a second round of measures to add to its $17.6billion economic boost announced last week.
‘We’re looking at some pretty significant options that we would never have considered in the past,’ Finance Minister Mathias Cormann told Seven on Tuesday.
‘We are working our way through that as we speak.’
Aviation and tourism workers are losing money after mass cancellations amid the coronavirus crisis
Qantas boss Alan Joyce announced a 90 per cent cut to international flights and a 60 per cent reduction to domestic flights (stock image)
Mr Cormann said the hospitality and tourism sectors would be among the hardest hit.
‘We are focused on supporting those businesses and workers most affected by the downturn of the coronavirus,’ Senator Cormann said.
The initial rescue package targeted relief for small and medium businesses, along with cash payments to people on welfare.
The government intends to pass both tranches of its support package when parliament sits next week.