Falling Unemployment Rate Helps Boost Confidence | Liverpool City Champion
The unexpected drop in the unemployment rate last week helped boost Australian confidence.
However, there was a clear divide between those who were stuck with a virus and those who were not.
The ANZ-Roy Morgan Consumer Confidence Index rose 0.5% over the past week, helped in part by the surprise drop in the unemployment rate to a 12-year low of 4.6%.
There were strong confidence gains in Western Australia, up 11.4 percent, while it rose 8 percent in South Australia. Queensland rose 1.7%.
However, the locked down NSW fell 1.9% and Victoria was down 2.9%.
“But even with this drop, sentiment in these two states remains well above last year’s lows,” said David Plank, head of Australian economics at ANZ.
“This confirms our expectation that household spending is likely to rebound strongly in lockdown areas when restrictions ease.”
However, the Executive Director of the Business Council of Australia, Jennifer Westacott, has warned that the longer the country remains under restrictions when an 80% vaccination rate is reached, the harder it will be to recover.
“The longer we stay in a fortress country, the longer and shallower our recovery will be,” Ms. Westacott told Sky News.
Prime Minister Scott Morrison is basing his hopes on the nation’s plan to open up the economy once vaccination rates of 70% and 80% are reached.
Just over 30% of Australians are currently fully vaccinated.
However, some states appear to be backing down from the national cabinet’s agreement at a time when NSW publishes hundreds of new infections a day.
An analysis of the work of federal emergency payments suggests that they may not be that lucrative for those who are stranded and unable to work.
It indicates that while the cumulative costs of these payments are currently estimated at $ 25 billion, only $ 4 billion has been disbursed.
He also estimates that people with support in NSW will have lived on $ 38 per week, $ 25 per week in Victoria and only $ 23 in ACT.
“Scott Morrison and Josh Frydenberg have coughed up a small fraction of the $ 300 million a day that is being bled from the national economy as a direct result of their incompetence,” Shadow Treasurer Jim Chalmers told AAP.
“Ending JobKeeper before the pandemic is over and before enough Australians are vaccinated seems dumber day by day.”
Meanwhile, Australia may have been hit by the worst recession in a hundred years, but the country’s entrepreneurship seems unwavering.
New figures released by the Australian Bureau of Statistics show that in fiscal year 2020/21 there was a 3.8% increase in the number of businesses in Australia.
Associated Australian Press