State of the Australian Economy and Main Challenges

Australia’s government should come up with a comprehensive plan regarding future job creation, as the country is trying to deal with the economic impact of the coronavirus pandemic. It is worth mentioning that Australia’s government announced a fiscal stimulus worth 289 billion Australian dollars ($206.54 billion). The amount equals to around 14.6% of the country’s gross domestic product (GDP). The government wants to support workers, households, as well as businesses affected by the coronavirus. Despite all efforts, analysts expect the economy to shrink by 3.75% in 2020.

However, job losses represent a major concern, as the pandemic ended the local economy’s nearly three-decade growth streak. Interestingly, it was one of the longest seen in any country around the world.

It is not surprising that the job market is a crucial topic. According to Shadow Treasurer Jim Chalmers, the unemployment rate is predicted to peak at around 9.25% in the three months that will end in December. Hopefully, the labor market will strengthen its positions beyond 2020, but it will take time to decline.

Importantly, he believes that the government should have included a plan on how to create jobs once the temporary support measures trail away from the economy in the budget update.

According to the information provided by the Australian Bureau of Statistics, the unemployment rate in June was at 7.4%.

Australia’s government and local economy

It is worth mentioning that Australia’s government introduced temporary subsidy and supplementary measures to help businesses in keeping more people on the payroll. Moreover, the government provided additional support to people who lost their jobs. Thankfully, the government extended both measures.

However, to deal with the long-lasting impact of the coronavirus pandemic, Australia needs a comprehensive plan for new job creation for the future. The purpose of this plan is to focus on where the new jobs are going to come from.

One option is to invest in public housing. Construction is labor-intensive. Moreover, by investing in public housing, it is possible to deal with two problems at the same time. The first is unemployment and the second is that, thanks to the plan, most vulnerable people will be able to improve their living conditions.

There is another option as well. It is possible to sort out Australia’s energy policy, to make companies eco-friendlier. As a result, cheaper energy will reduce business costs. Moreover, companies will be able to hire more people thanks to this option. The country’s government needs a comprehensive plan to create more jobs.