Australia | Withdrawal of JobKeeper a surmountable challenge

The JobKeeper program has been highly successful in cushioning the COVID19 shock to the labour market. Its relatively swift and generous rollout in Q2 2020 helped keep firms and workers attached, keeping a lid on job losses and unemployment. With the scheme concluding at the end of March, the challenge now is for the labour market to stand on its own two feet.

What you will learn :

  • Job prospects are relatively good in the industries where JobKeeper recipients were concentrated at the end of 2020. While challenges remain in tourism exposed sectors, we do not expect the ongoing labour market recovery  to be derailed by the end of JobKeeper.

  • Reliance on JobKeeper has varied across industries based on the share of casual employment and trading restrictions faced by each industry. But reliance on the program has fallen across all industries.

  • Industries facing greater demand and adding to their headcount have been associated with a sharper fall in JobKeeper subscription.

Topics: Australia, Macro

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