The quicker people are in jobs, the quicker the recovery will be: Treasurer
Sky News Australia
Published at : 22 Dec 2020
Treasurer Josh Frydenberg says "unemployment rises rapidly but falls slowly", stating the quicker people returned to work, the quicker Australia's economic recovery would be.
Speaking to the National Press Club about last night's federal budget speech, Mr Frydenberg said the lessons economists have learnt from recessions in history led to the government's jobs-centred budget approach.
"Unlike most other advanced economies, Australia did not have a double-digit contraction in economic growth in the first half of this year and already there are signs that the Australian economy is fighting back," he said.
"Of the 1.3 million people that lost their job or were stood down and saw their working hours reduced to zero in the early weeks of this crisis, some 760,000 of them are now back at work.
"Following the recession in the 1990s, it took nearly 10 years for the unemployment rate to return to pre-recession levels. For younger Australians, it took a remarkable 15 years."
Mr Frydenberg said there could be no economic recovery without a jobs recovery and no budget recovery without a jobs recovery.
"Household consumption represents more than half of the Australian economy so we need households to have more money in their pockets and the confidence to spend that money," he said.
"This will see disposable income continue to remain above pre-COVID levels, even as our temporary crisis support measures are gradually unwound."