Predictions Linked to Economic Downturn and Fuel Crisis
The Australian Council of Social Service (ACOSS) has raised alarms about potential rising unemployment by the end of the year. Forecasts suggest the unemployment rate could increase significantly due to economic challenges, particularly the ongoing fuel crisis.
According to ACOSS CEO Cassandra Goldie, the current unemployment rate is 4.3 per cent. However, major banks and other forecasters speculate it could jump to between 5 and 6.5 per cent, depending on global economic conditions. Some scenarios suggest an increase in unemployment of between 100,000 and 300,000 people might occur if a downturn takes place.
“If this were to occur, the important post-pandemic gains in employment for people would disappear,” Goldie stated. She highlighted that unemployment has already risen from 3.5 per cent to 4.3 per cent since mid-2022, affecting an additional 150,000 individuals.
Impact on Low-Income Individuals
A simultaneous rise in unemployment and inflation would disproportionately affect those on the lowest incomes in the community. Goldie emphasised the urgency of addressing these issues.
ACOSS is urging the government to take immediate action in the upcoming Federal Budget. They recommend measures such as increasing income support payments like JobSeeker and Youth Allowance to at least $600 per week. ACOSS calls for efforts to cap rent and gas prices to mitigate inflation pressures.
Meanwhile, the organisation also advocates for significant investments in employment services. These reforms aim to provide individuals with real support in finding suitable paid work. Goldie believes that a robust social security system is essential to protect against potential economic downturns.
ACOSS also suggests temporarily capping wholesale gas prices, further reducing healthcare costs, and covering solar subsidies on power bills to help alleviate the economic burden on low-income households. The fuel crisis is a major concern, and its impacts could have severe repercussions on the job market.
“Our social security and employment services systems are not fit to help people and provide the community with the resilience and support it needs,” Goldie remarked, emphasizing the need for urgent government intervention. Since the middle of 2022, an increase of 150,000 people facing unemployment has already been recorded.
ACOSS is particularly concerned about the risks from any economic downturn by the end of the year, which could arise from the ongoing fuel crisis and its likely flow-on effects. The organisation stresses that the government must act swiftly to protect people and ensure preparedness for any potential economic downturn.
Contact details for further information: Charlie Moore at 0452 606 171.
