During Thursday’s session, Australia posted its biggest monthly job decline since records began, mainly due to coronavirus lockdown measures and the halt in trade with China.
Unemployment figures from Australia’s statistics office revealed the severe impact COVID-19 has had on the national economy, bringing an end to a two-decade unbroken run of the month on month growth.
Prime Minister Scott Morrison has said: “This is a tough day for Australia, a very tough day. Terribly shocking, although not unexpected.”
Data from the Australian Bureau of Statistics has revealed that 594,300 jobs were lost in April, the largest decline on record. The rate of unemployment has increased from 5.2% in March up to 6.2%, the highest level since September 2015.
Economists are expecting worse to come, with the Reserve Bank of Australia (RBA) last week forecasting unemployment rates to increase nearer to 10% by June, as the local economy is estimated to shrink by 8%.
Australia has imposed strict social distancing measures since March in an attempt to halt the spread of the virus by closing borders to all foreign nationals and insisting people remain at home unless for conducting essential business. Pubs, leisure centers, libraries, and other public buildings remain closed, while restaurants and food outlets have been restricted to takeaway services only.
By Friday Australians are expecting to have some restrictions lifted, with their most populated state, New South Wales, only reporting 4 new cases, bringing the national total to around 7,000. There have only been 98 reported deaths which are significantly lower than levels seen across North America and Europe.
Premier Gladys Berejiklian has said “The increase in an activity does mean extra cases [are to be expected]” with 7 million Australians preparing to be allowed to resume non-essential activities. Earlier this week, Treasurer Josh Frydenberg said that easing restrictions will likely increase monthly GDP by $9.4 billion AUD ($6.10 billion USD).
