Australia: job retention aid to be sustained over the long term

Following a new outbreak of coronavirus cases in the capital of the Australian state of Victoria, Greater Melbourne, which has a population of over 5 million, went into lockdown once again for six weeks, as of the evening of 8 July, just two months after the government announced a step-by-step programme to ease restrictions. These drastic new measures, even though residents are still allowed to go out to work, raise questions about the follow-up to the job retention measures adopted early on by the Australian government. The vast A$130 billion (€80 billion) JobKeeper plan, which was launched on 31 March, was unanimously hailed for its effectiveness in cushioning the effects of the health crisis on employment however it only runs until September and unemployment has already risen sharply – from 6.4% in April to 7.1% in May, a rate not seen in 19 years – and the Reserve Bank of Australia has forecast that the rate will rise to 10% in June, even before the second wave of infection has struck again.