Treasurer says what 2021 will hold for JobKeeper

The federal government has come up with plans to bring Australians back to work, but there is still no answer as to how much financial support they will provide to those who cannot find a job beyond the end of the year.

The unemployment welfare payment, known as JobSeeker, was increased every other week with a $ 500 coronavirus supplement during a pandemic.

It has now been reduced to $ 250 and will stay there until December, with the government hesitating to outline what will happen after that.

Business and welfare groups are calling for a permanent and appropriate increase in JobSeeker.

Treasury Secretary Josh Frydenberg said it depends on what happens in the coming months.

At JobSeeker, Josh Frydenberg is playing cards near his chest. Photo: AAP

“The exact percentage has not yet been determined and will be near the end of the year,” Frydenberg said. insider..

“We want to see where the economic outlook is.

“We want to see if the restrictions have been lifted, if there is another wave of cases, and where the dynamics of the labor market are.”

The Treasury predicts that the unemployment rate will reach 8% in the December quarter and will not drop to 6.5% until the June 2022 quarter.

Some companies can’t survive

JobKeeper’s wage subsidy ended in March 2021, and finance officials said they expected the new measures outlined in the budget to provide adequate long-term support.

Closed retail shutdown coronavirus
It’s the curtain for many small businesses, says Treasury Secretary Josh Frydenberg. Photo: Getty

However, he admitted that not all businesses supported by JobKeeper survive.

“The Treasury does not calculate the number of businesses created or closed,” Frydenberg said.

“Some businesses will not survive and some jobs will be lost.

“There is a business that can be folded, and it’s definitely. You can’t save every business, you can’t save every job.”

Support for women and young people

Frydenberg defended the federal budget, which shed light on supporting women-dominated industries.

A central part of Tuesday night’s budget was the $ 4 billion JobMaker Hiring Credit scheme. It states that the government will encourage companies to hire young workers.

Under this plan, employers hiring new employees between the ages of 16 and 29 who are welfare will receive $ 200 a week to help pay their wages.

They receive $ 100 a week for each new qualified employee between the ages of 30 and 35.

Employment data July
Women face the daunting task of returning to the workforce. Photo: Getty

Some argue that the policy keeps older women out of the coveted support, but the treasurer again defended the plan.

“The reason we went to the 16-35 cohort is because if you look at the unemployment rate of 15-34 people now, it’s about 10 percent,” said Josh Frydenberg.

“The unemployment rate for people between the ages of 35 and 44 is 4.9 percent.”

Frydenberg claimed that the previous recession took time for young people to find a job.

“In the 1990s, it took 10 years to reduce the unemployment rate to less than 6% from the start, but it took an amazing 15 years to bring the number of youth jobs down from the start. That’s the first thing that comes to mind, “he said.

In August, the female labor force participation rate fell to 60% and the male participation rate dropped to 69.7%.


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