Unemployment rate set to double

THE unemployment rate has been predicted to double to 10 per cent in the June quarter, and some local businesses are already under pressure from the fallout of the coronavirus.
Commerce Torquay president Jeff Crow said he did not have a figure for the number of jobs lost so far in his town, but Torquay’s reliance on the surfing and tourism industries made it particularly vulnerable.
“Everyone I’ve spoken to has laid people off.
“RACV Torquay is down 300 people and I know Rip Curl has stood down 1,500 people across Australia; and those that are left have been asked to do one day a week.”
He said the traders could negotiate reductions or pauses in their rent from landlords but would have to pay it all back later, and might also have to pay rates to the Surf Coast Shire council for al fresco areas they could not use because of the Stage 3 restrictions.
The situation is a little better in Anglesea. Business And Tourism Anglesea president Damien Cerantonio said his town serviced a mostly domestic market, and residents were embracing Anglesea’s “buy local” campaign.
“The town is as upbeat as possible.
“Businesses have lost Easter and the school holidays, but to be honest, May, June, July and August are not the most productive months down here.
“I’m quite optimistic we’re going to see a spike (in trade) later, because people will want to travel when they can.”
Last week, federal Treasurer Josh Frydenberg said the International Monetary Fund had projected Australia’s economic growth to fall by 6.7 per cent in 2020.
Despite the grim figure, Mr Frydenberg said his government’s JobKeeper payments were keeping more Australians in jobs and Treasury had estimated the unemployment rate would be even higher without the $130 billion package, peaking at 15 per cent in the September quarter.
More than 800,000 businesses have registered for JobKeeper across Australia, but Mr Crow said the payments would not help workers in Torquay who only had jobs for six to eight months of the year.
“There are casual or part-time employees, who at the same time are full-time Torquay residents, that don’t qualify.”
Mr Cerantonio said the introduction of JobKeeper had allowed his business, the Great Ocean Road Resort, to reinstate 18 workers that had been stood down, but not all workers in Anglesea were in the same situation.
“The worry in the community is with the younger aged workers, who fill a lot of the casual positions, they’ll be the ones who are suffering the most.”