That's a real hoot :bee:
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As far as headlines go - they don't get much more eye catching than this...
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'Worst since 1932': Two million Aussies face unemployment queue
More than 2 million Australians could be out of work, with unemployment expected to soar as businesses begin shutting their doors and standing down or sacking workers because of the coronavirus pandemic.
Queues of laid-off staff snaked around blocks in Melbourne and Sydney on Monday in scenes reminiscent of the Great Depression. Under unprecedented sudden demand, the Centrelink website crashed and phone lines jammed. Those in line for payments now face a month-long wait to receive $1100 a fortnight in unemployment benefits.
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Amid warnings the global economy is being irreparably damaged, a string of organisations including the AFL, NRL, Village Roadshow and Helloworld announced they were standing down staff or putting them on leave as restrictions aimed at curbing the spread of the coronavirus came into operation.
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The Sydney Morning Herald and
The Age have spoken to senior sources in the banking and the forecasting sectors who said their analysis showed
Australia was headed for an unemployment rate of 15 per cent or more. It currently stands at 5.1 per cent.
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A source who could not be named for commercial-in-confidence reasons said unemployment at that level would mean more than 2 million Australians out of work. It would be the highest jobless rate since 1932.
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Treasurer Josh Frydenberg would not be drawn on unemployment projections on Monday but said up to 1 million people could be paid the special coronavirus payment, which will go to existing and new recipients of unemployment support. This includes sole traders. The hospitality sector alone employs more than 10 per cent of Australians.
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In the Sydney CBD more than 15,000 hospitality jobs are set to go under the shutdown of pubs and clubs and the implementation of takeaway-only restrictions on cafes and restaurants. A further 11,000 hospitality jobs in the Melbourne CBD are also on the line.
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Across Melbourne's suburbs, St Kilda, Richmond, and Brunswick will be among the hardest hit, with 3000 hospitality jobs in each set to disappear under the shutdown measures. In Sydney, Pyrmont and Ultimo could lose 4900 jobs, while a further 3000 could go in each of Redfern, Chippendale, Strathfield and Surry Hills.
The shutdown of non-essential indoor venues is likely to only be the beginning of the economic havoc caused by the virus, as governments consider measures that would effectively close all non-essential businesses including most workplaces.
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The economic impact is expected to be particularly severe for those employees who are towards the end of their careers.
As a result of Australia's last recession, unemployment among men aged 55 or more peaked at 12.7 per cent. Among men aged between 45 and 54 it reached 7.6 per cent.
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In Victorian suburbs such as Keilor East, 17 per cent of the hospitality workforce is aged 55 or more while in the Victorian border town of Yarrawonga the proportion is more than a third. In Sydney, Malabar and La Perouse have 20 per cent of their hospitality workforce aged over 50. Mona Vale has more than 17 per cent in the same category.
ANZ senior economist Catherine Birch said unemployment would climb rapidly and in much greater numbers than Australia experienced during the global financial crisis, when the jobless rate lifted from 4 per cent to 5.9 per cent over a 15-month period.
She said a rise in unemployment will also bring health issues.
"Periods of higher unemployment are associated with a deterioration in mental health and a higher suicide rate. And in this crisis, social distancing and isolation pose additional risks to mental health," she said.
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ens of thousands of workers will now be forced onto welfare as the government grapples with a surge in demand that has overwhelmed the system, crashing the Centrelink website on Monday morning as more than 55,000 people attempted to lodge their claims.
The unemployed will get a $750 payment from March 31, but they will have to wait until April 27 before a special $550 a fortnight virus supplement is available for those on the JobSeeker payment.
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Minister for Government Services Stuart Robert said the timing was a matter for policy ministers, including Mr Frydenberg and Social Services Minister Anne Ruston. Mr Frydenberg's office said it was a matter for Senator Ruston. Senator Ruston's office said it was a matter for Mr Robert.
A government source said the month-long waiting period was needed to upgrade the technical capabilities of Centrelink to deliver the coronavirus supplement to the bank accounts of thousands of new customers.
Rating's agency Moody's said world GDP would be cut by up to 2 percentage points this year because of the virus, with the impact to reverberate long into the future.
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"The sudden and sharp increase in risk aversion, fed by fear that economic activity will be several curtailed for months, has the potential to propel a self-fulfilling vicious cycle of deteriorating confidence, weak earnings expectations, lower business investment, retrenchment in employment and a further pullback in consumer spending," senior analyst Madhavi Bokil said.
"As a result, GDP growth will be permanently lower.
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https://www.smh.com.au/politics/federal/...54d14.html
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