Jobless rate to spike further: CCI
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Unemployment will reach 11 per cent in WA this financial year, according to CCIWA, with business investment set to fall.
The latest economic outlook report from the Chamber of Commerce and Industry of WA expects unemployment will continue to rise from the 8.7 per cent level in June.
“Weekly payroll jobs have showed some signs of recovery, particularly in WA, supported by the reopening of the WA economy,” the report said.
“However, the unemployment rate will continue to increase as government support measures are wound back and more people look for work.
“Ultimately, continued elevation in the unemployment rate will limit increases in wages and inflation.”
Business investment would drop 4.5 per cent in the 2021 financial year, CCI said, while household consumption will fall 3 per cent.
Increasing business investment will be particularly important to the rebound, CCI said, with a more competitive tax and regulatory environment key on this regard.
All up, the state’s economy will shrink 0.2 per cent before growing slowly in the 2022 and 2023 financial years.
Wage growth would be a mere 0.5 per cent this financial year.
“Despite the economic mayhem unfolding, Australia’s strong export sector and consumption driven by government stimulus will see State Final Demand and Gross State Product grow in 2019-20,” the report said.
“The full impacts of COVID-19 will be felt in the current financial year.
“Falls in income and employment will reduce consumption, and while some dwelling investment activity driven by state and federal government incentives will support the economy, the net result will be a domestic economic contraction in 2020-21.”