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Virus may cost 11,000 jobs, casuals will be first

Queensland is looking at widening jobs gulf with some areas of the state experiencing severe problems, particularly for the young, while the coronavirus is predicted to slash about 11,000 jobs from the state.

Feb 28, 2020, updated Feb 28, 2020

 

QEAS economist Nick Behrens said the Government’s prediction of a $1.7 billion hit to the economy would mean the loss of more than 11,000 jobs in Queensland.

He said the $1.7 billion hit was equivalent to 0.46 per cent of Gross State Product which would equate to about 11,765 jobs fewer jobs.

“Casuals in tourism and horticulture, low-skilled workers in export-related businesses across resources and manufacturing (would be) most susceptible,’’ Behrens said.

Retaining jobs is the State Government’s biggest priority, according to Treasurer Jackie Trad, but the problems in parts of the state are already bad.

The virus is already impacting exports. The Chamber of Commerce and Industry Queensland said beef exports were down 8 per cent, fresh produce was down 16.7 per cent and live marine exports were down 73.53 per cent.

Conus economist Pete Faulkner said trend employment growth in Queensland was 2.3 per cent, but 3 per cent in Greater Brisbane and only 1.6 per cent in the rest of the state.

He warned that the impact of the coronavirus was yet to turn up in the data.

“Unfortunately, it would appear inevitable that in coming months we will see this trend weaken; the full extent of which we are yet to be sure of,’’ Faulkner said.

Toowoomba’s youth unemployment has exploded from 13.2 per cent a year ago to 22.6 per cent, according to an analysis of the Australian Bureau of Statistics data in the Conus/CBC Staff Selection survey.

Toowoomba has also seen a jump in the number of people opting out of the workforce while about 10,000 jobs have disappeared in the city in the past year.

Ipswich’s youth unemployment has jumped from 9.6 per cent a year ago to 22.5 per cent, but its middle-aged workers have experienced a jobs boom with an extra 8000 jobs in a year in the 25 to 44 age bracket, a demographic that’s important because it is usually these people who do most of the spending.

Ipswich’s overall unemployment has jumped from 5.9 per cent to 8.2 per cent in a year.

The Gold Coast young workers have also suffered. About 9000 jobs in the age group have disappeared in a year and the number of jobs overall has fallen by 12,000 in the past year.

Employment Minister Shannon Fentiman said the Government knew there was always more to be done and that there were parts of regional Queensland facing particular challenges including the prolonged drought or the uncertain impacts of coronavirus.

“That’s why we continue to support drought-affected communities and why we moved quickly to put in place a $27.25 million package of relief measures for industries affected by coronavirus,” she said.

“We are also actively supporting sectors that can create more jobs in more industries, from the rapid growth in renewable energy projects, to the protecting traditional manufacturing jobs in places like Maryborough, and the development of a hydrogen industry in Gladstone.”

 

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