Alarming numbers face job losses from Sydney lockdown

Tens of thousands of Sydneysiders are predicted to lose their jobs because of the strict lockdown measures as the Covid crisis continues to escalate.

One of the nation’s ‘big four’ banks has tipped between 50,000 and 60,000 workers in NSW would lose their jobs because of the lockdown.

But the lockdown extension means that figure could be much higher.

“We expect the recovery will be delayed for at least one month (from what we had previously factored in) to October,” a report from ANZ stated.
As we’ve previously noted, hours worked, underemployment and participation tend to be much more affected by lockdowns than employment or unemployment rates.”

While NAB predicted the current lockdown won’t have too much of an influence on economic recovery and job loss, but that was before Gladys Berejiklian announced a four week extension to the stay-at-home orders.

“At this stage we do not see the recovery as having been derailed, given the significant momentum heading into the current disruptions but there are some downside risks to our forecasts if we see material extension to the lockdown,” a report from NAB revealed.

Unemployment is predicted to continue declining, reaching 4.8 per cent by end 2021, and 4.6 per cent by the end of 2022.

“While highly uncertain, we see full employment consistent with an unemployment rate in the low 4’s (per cent).”

On Wednesday it was revealed support was on its way for NSW with Treasurer Dominic Perrottet announcing that businesses were now eligible for payments of up to $100,000 per week.

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