Prime Minister Scott Morrison says Australians should prepare themselves for more “hard news” after the release of April jobs figures showed the impact of coronavirus shutdowns on the economy. Follow live.
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By Jon Healy
Summing things up
The official unemployment rate is up to 6.2 per cent from March to April – a rise of 1 percentage point from the previous month, which is lower than anticipated. Prime Minister Scott Morrison said it was “a very tough day” and while the numbers were “terribly shocking”, it wasn’t exactly unexpected.
“These unemployment figures reveal the real and painful economic impact of coronavirus,” Treasurer Josh Frydenberg said.
Another figure that Mr Frydenberg highlighted was the record 13.8 per cent youth unemployment rate.
He and Mr Morrison said things could have been worse if not for the supports the Government put in place; things like JobKeeper, JobSeeker and the 50 per cent wage subsidy.
There has been concern about the future of the $1,500 fortnightly JobKeeper payments, which have been pledged to continue through to September, especially with a review looming next month. The Prime Minister said that review was the plan all along and reiterated that the supports “will remain vital in the months ahead”.
Mr Frydenberg said 6 million people are now being aided by the JobKeeper payments, while there are 1.6 million people claiming JobSeeker and the youth allowance.
Mr Morrison said the Government wants to see the people who are claiming welfare, particularly JobSeeker, start looking for work, but acknowledged those opportunities are still quite scarce even as the economy opens up.
Many business experts are saying the ABS’s official figures are not showing the complete picture, and Mr Frydenberg said Treasury is still anticipated unemployment will reach 10 per cent.
By Bridget Judd
And that’ll do me for today — Dan Miller will be taking you through this afternoon, while Jon Healy will be on board to answer all your questions.
Thanks for following along.
By Bridget Judd
Key Event
WA records one new case of COVID-19
That takes the state’s total to 554.
The new case is a woman in her 30s from the metropolitan area.
She was a close contact of a previously confirmed case.
By Bridget Judd
Key Event
Queensland records no new cases of coronavirus
The total number of cases remains at 1,052 with only 16 cases active.
By Bridget Judd
‘This is a devastating figure’
And that’s a wrap on the PM.
Just prior to Mr Morrison stepping up, Labor Leader Anthony Albanese weighed in on the unemployment rate.
He said despite the figures being lower than economists had forecast, they’re not a cause for celebration:
“That’s a devastating figure, they’re all people with families with a need to put food on the table,” Mr Albanese said.
“They’re people who are our friends, our relatives our neighbours.
“The problem here is that there will be a cumulative effect.”
Mr Albanese also criticised the Government’s JobKeeper program, saying it was leaving people like casuals and those in the arts and entertainment industries behind.
Mr Albanese said the fact the unemployment rate was lower than forecast by some economists was not a cause for celebration.
By Bridget Judd
Is the Government still expecting unemployment to hit 10 per cent?
Mr Frydenberg says yes.
“Treasury’s forecast is for unemployment to reach around 10 per cent.
“But importantly, Treasury have also said, but for the JobKeeper program, it would be 15 per cent and that’s really important to understand.”
By Bridget Judd
‘We’re going to let the process run’
Asked about the Queensland Government’s bid for a stake in Virgin Australia, Mr Morrison said the Government would “let the process run”.
“We’re not going to put a commentary on this bid or that bid, and what we want is a commercial airline that can stand on its own two feet and employ the thousands of Australians that it does and be successful.”
By Jon Healy
Government wants JobSeekers to start seeking jobs
During this period of shutdown/lockdown/quarantine/self-isolation (whatever you want to call it), people have been claiming JobSeeker despite the fact there weren’t really any jobs to seek.
Now that a smattering of businesses are starting to trade again, the Government wants to see people getting back on the job hunt.
“As the economy reopens and as opportunities open up again of course we want to see people taking up those opportunities,” Mr Morrison said.
He did, of course, acknowledge that those opportunities, relative to a fully open economy, will be few and far between for a while longer.
By Bridget Judd
Do the statistics paint the full picture?
Asked if the JobSeeker program could be masking the real unemployment rate, Mr Morrison conceded the ABS figures