MYEFO – Welcome signs of further recovery

“Today’s MYEFO and labour force report cards provide welcome additional signs of further recovery. The lifting of restrictions in Victoria was a key element in the further jobs growth recorded in November with that state accounting for over 80% of new positions. While that is welcome, this concentration illustrates that the pace of jobs growth and recovery in the rest of the country eased considerably in November,” Innes Willox, Chief Executive of the national employer association Ai Group said today.

“Today’s MYEFO indicates a welcome improvement in the anticipated budget position largely due to lower JobKeeper outlays. With eligibility for JobKeeper in the current period based on business turnover in the September quarter the lower than anticipated take up of JobKeeper comes as no surprise after the 3.3 per cent September quarter increase in GDP. The fiscal ‘saving’ is clearly good news for the federal budget – a few more of these sorts of savings and we will be looking at serious money.

“The downside is that the extent of fiscal stimulus is lower than anticipated. Business will be hoping that the pace of recovery over coming months is sufficient to offset the lower injection of public funds into the economy,” Mr Willox said.

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