Treasurer Josh Frydenberg is confident of an impressive recovery for the Australian labor market, as COVID-19 restrictions and lockdowns come to an end.
Labor hopes that the treasurer is correct this time, after making similar remarks one year ago, and prior to 2021 which was just as bad as the year before.
The official data on employment from October that were released this week revealed that the unemployment rate increased unexpectedly to 5.2 percent from 4.6 percent, though the numbers did not reflect the relaxation restriction for NSW, Victoria, and the ACT.
The economy of Australia is will be helped by the private sector’s lead in growth
But Frydenberg states that Australian Taxation Office data shows employment in the payroll sector increased by 13 percent over the period from October 24 to October 23.
New hires increased by 25% in NSW in NSW, 15 percent within Victoria and 22 percent for the ACT.
“We are witnessing hundreds of new recruits in the country, but more importantly, we’re likely to witness tens of thousand, or even hundreds of thousands, of people get off zero-hours and go return to jobs,” the treasurer told Sky News’ Sunday Agenda program.
“We are extremely positive about a rapid recovery on the job market, and that we will have unemployment return to four figures, keeping in mind that it’s been lower than five percent for over a decade.”
Treasurer shadow Jim Chalmers hopes his Liberal counterpart is right.
“Josh Frydenberg declared at Christmas last year this was start of a robust recovery.” Dr. Chalmers stated to reporters.
“Instead his indifference to vaccinations, quarantine as well as economic assistance led to the fact that the economic situation in 2021 was nearly the same as it was in 2020.”
Treasury analysis using bank data also shows that consumer spending is up more than before the pandemic, in NSW as well as Victoria spending an additional $150 million per day following the lockdowns have eased.
Frydenberg believes that the economy to be facing an economy driven by the private sector.
“We as a government have handed the baton over for the business sector in order to help the economy of Australia grow as the lockdowns have been lifted,” he said.
“Our payment were for emergencies and when we reached an 80 percent vaccination rate, we could bring these payment emergencies down to a minimum.”
However, Dr. Chalmers stated that there shouldn’t be any complacency with this improvement.
“The government may claim that everything is in order in the economy and the economy is going well however, a staggering 200,000 people lost their jobs within the last 2 months.” He said.
“We hope this will be an economic recovery in which ordinary working people don’t get left behind, and working families can make a difference but the government isn’t able to grasp that.”