Job losses would have doubled during the coronavirus pandemic if the federal government did not implement the JobKeeper wage subsidy scheme, according to a new report cited by news.com.au.
Treasurer Josh Frydenberg said the JobKeeper discussion paper published by the Reserve Bank of Australia confirmed emergency wage relief implemented in April was a “country-saving moment”.
The RBA in its detailed review of the Morrison government’s key support initiative during the coronavirus pandemic, revealed about 700,000 workers were saved from unemployment.
It also found one in five workers would have lost their jobs if they were not supported by the $1500 a fortnight subsidy in the first four months of the pandemic.
“JobKeeper has provided an economic lifeline to more than 3.5 million Australians and in the words of the RBA ‘reduced total employment losses by at least 700,000’,” Mr Frydenberg said.
“Underlining the incredible impact JobKeeper has had the RBA finds that ‘overall employment losses would have been twice as large over the first half of 2020 without JobKeeper’.”
JobKeeper was first introduced in April and was available to businesses impacted by virus lockdown measures.
The policy allowed businesses to retain staff and subsidise wages for part-time and full-time employees.
“We find that JobKeeper played an important role in cushioning the decline in employment over the first half of 2020,” the RBA said in its report.
“Overall employment losses would have been twice as large over the first half of 2020 without JobKeeper.”
It was also noted JobKeeper had more of an impact on employment levels than supporting total hours worked.
FULL STORY
New RBA report reveals how important JobKeeper has been during the coronavirus recession (news.com.au)
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