JIM CHALMERS MP
SHADOW TREASURER
MEMBER FOR RANKIN


‘EXCEPTIONAL UNCERTAINTY’ IN ECONOMY

While the IMF’s new World Economic Outlook Update says prospects for global growth have improved, it still expects the international economy will be characterised by risk and uncertainty associated with the ongoing COVID-19 pandemic.

In such an uncertain economic environment, it is beyond comprehension that the Morrison Government has a plan to cut the wages of working Australians and rip support out of communities, industries and businesses which are still struggling.

It’s welcome that parts of our economy are recovering but this Outlook highlights the substantial challenges of high and persistent unemployment and underemployment, the risk of labour market scaring and the need to maintain support until a vaccine is broadly deployed.

According to the Outlook:

- “Global activity will remain well below the pre-COVID, January 2020 WEO projections through the forecast horizon. The strength of the projected recovery varies across countries, depending on the severity of the health crisis, the extent of domestic disruptions to activity, the exposure to cross-border spillovers, and—importantly—the effectiveness of policy support to limit persistent damage.”

- “Although employment in some countries generally appears to have recovered more quickly from the trough of the recession than in previous downturns, large numbers of people are still unemployed and underemployed in many countries…Moreover, as discussed in the October 2020 WEO, the burden of the crisis has fallen unevenly across groups: workers with less education, women, youth, those in contact-intensive sectors, and those informally employed have suffered disproportionate livelihood and income losses.”

- “Policies should ensure effective support until a vaccine-powered normalisation of activity is underway and limit persistent damage from the deep recession of the past year.”

The Morrison Government should not and cannot congratulate themselves while more than two million Australians are either without a job or don’t have enough hours and wages are stagnant.

After racking up a trillion dollars of debt, the Morrison Government should have more to show for it in terms of jobs and opportunities but instead they’ve wasted too much on rorts, executive bonuses and advertising.

The Morrison Government’s plans to cut wages, cut super and wind back consumer protections in the banking system risks weakening the recovery and will leave too many Australians behind.

WEDNESDAY, 27 JANUARY 2021