700k Australians could lose their jobs?
Australia’s economic challenges will make a huge dent on the country’s unemployment rate—falling by 5.1% in February and doubling its downward impact within a span of four months.
Economic Turmoil
The forecast is that unemployment will fall to 5.1% in February and double by June, putting Australia's economy in significant turmoil.
1.4M Unemployed
Despite over 225,000 combined job vacancies from private and public sectors, the total unemployed could reach 1.4 million.
Wage Reductions
Government payment supports have mitigated the impact, though younger citizens may face future wage reductions due to debt repayment.
Australia’s economy is undoubtedly facing a tremendous turmoil, causing for the unemployment rate to fall by 5.1% in February. Economists forecasts for the rate to double by the end of June this year if seven hundred thousand citizens more will lose their jobs by the next few months. This assumption would mean it is the highest out of work rate since the first quarter of 1994 following the recession recovery on June 1991. That would make a total of 1.4 million people in Australia alone who are unemployed, with almost eight hundred thousand seeking for employment. Fortunately there are still a number of job vacancies in Australia counting to over two hundred thousand in the private sector, and over twenty five thousand in the public sector. The country’s Treasury stated that the results could have been worse without the government’s payment supports, although one of the country’s specialists in tax systems warns that younger citizens and residents are the ones who may suffer from repaying the debts in the future which would reflect on lower wages
As businesses were forced to close down due to the coronavirus pandemic, more and more employed citizens were shown the door out of their workplaces.
Young Australians could bear the cost of the surging unemployment rate, potentially receiving lower wages in the future.
See the references for more information:
Trend Estimates Australia Bureau of Statistics
Unemployment to hit 10 per cent, 1.4m Aussies out of work: Treasury
