Big banks warn one in 10 workers will lose their jobs in Sydney’s lockdown as skyrocketing food and petrol prices add to their misery
- Bank analysts predict up to 300,000 jobs lost in Sydney extended lockdown
- ANZ’s initial predicted job loss total of 60,000 workers to be stretched further
- Price of food and beverages also increased by 0.5 per cent over the Sept quarter
A tenth of workers are likely to lose their jobs during Sydney’s extended lockdown and rising inflation and prices mean they will struggle, analysts warn.
Major banks predict up 300,000 jobs could be lost over the course of the lockdown, which will now last until at least August 26.
Commonwealth Bank said one in 10 workers will lose their jobs, and ANZ’s earlier tip of 60,000 has blown out to many times more.
‘This number is now likely to be higher, and we expect the recovery will be delayed for at least one month, to October,’ ANZ senior economist Felicity Emmett said.
A tenth of workers are likely to lose their jobs during Sydney’s extended lockdown and rising inflation and prices mean they will struggle, analysts warn
CBA head of economics Gareth Aird expected Australia’s unemployment rate to peak at 5.6 per cent in October after falling over the first half of this year.
‘Substantial policy support will once again be needed to ensure that the economic rebound is swift when restrictions are eased,’ he said.
Rising unemployment was attributed to those who lose their job being unable to find new ones because of general economic downturn spurred on by lockdown.
Unemployment increased by 50,000 people in Sydney during Australia’s initial nationwide lockdown in March to May 2020.
To make matters worse on those who find themselves without an income and surviving on the $750-a-week government payments, costs are also rising.
Rising unemployment was attributed to those who lose their job being unable to find new ones because of general economic downturn spurred on by lockdown
Annual inflation has hit 3.8 per cent, its highest level since before the Global Financial Crisis.
Higher inflation along with other factors caused a 0.5 per cent increase to the price of food and beverages, petrol rose 6.5 per cent and furniture by 3.8 per cent.
Vegetable prices rose by 5.5 per cent and fruit by 4.7 per cent, which was attributed to a shortage of pickers due to border closures and natural disasters.
The NSW Government’s food voucher scheme offset the price rises for takeaway and fast food by 0.7 per cent and restaurant prices by 0.6 per cent.
At the same time wage growth in Australia rose by just 1.5 per cent, less than half the rate of inflation.