Expected rise in jobless numbers

AUSTRALIA’S unemployment rate is expected to hit 8 per cent when wage subsidies are due to end but the forecast is looking less grim as the health situation improves.

The economic shock of coronavirus was thrashed out at a Senate committee in Canberra yesterday.

Treasury secretary Steven Kennedy told the committee the unemployment rate was expected to be 8 per cent by September when JobKeeper was legislated to end.

“We have been steadily revising down our expectations of how high the unemployment rate will rise because of the fact the health scenario has continued to improve,” he said.

Dr Kennedy expects there to be some lag in getting Australians back to work as bosses initially offer more hours before advertising jobs.

But he did concede there were complications with measuring unemployment because of wage subsidies and the economy reopening.

Almost $13 billion in JobKeeper payments have flowed to 3.3 million workers. But 120,000 childcare staff will no longer receive the $1500 fortnightly wage subsidy from July 20, sparking speculation other sectors could be removed from the scheme early.

Treasury’s review of the program is due to be handed to the Government in late June, with any changes set to be announced on July 23.

“There may well be some further adjustments made at the edges in the context of the economic statement of July 23,” Finance Minister Mathias Cormann told the hearing.

Labor senator and committee chair Katy Gallagher questioned if the changes would mean more workers being removed from the scheme.

Senator Cormann said no decisions had been made about other sectors. Treasurer Josh Frydenberg told reporters the review would look at ways to strengthen and improve wage subsidies.

Childcare workers will instead receive transitional payments, which the Government argues are only slightly less than wage subsidies. AAP JOB ADS STEADY AFTER FALL, P20