Treasurer Josh Frydenberg is urging Australians to take advantage of a ‘great reshuffle’ in the labour market to score a better paying job.
Despite the Covid pandemic causing the greatest economic shock since the Great Depression, the Reserve Bank believes Australia is already on track to see the unemployment rate drop from 4.2 per cent now to 3.75 per cent later this year – for the first time since 1974.
Treasury analysis also shows that unlike some other countries, Australia is enjoying a ‘great reshuffle’ rather than a ‘great resignation’.
Addressing the Australian Industry Group on Monday, just weeks out from his pre-election March budget, Mr Frydenberg will call on Aussies to join the trend to make the most of the hot job market.
The new figures show that over one million workers started new jobs in the three months to November 2021, almost 10 per cent higher than the pre-Covid average.
Treasurer Josh Frydenberg (pictured) is urging Australians to take advantage of a ‘great reshuffle’ in the labour market
In the last three months, a record number of around 300,000 workers say they left a job because they were looking for better opportunities, and that has occurred across all industries.
‘Switching jobs allows workers to move up the job ladder for better pay, Mr Frydenberg will say.
‘Treasury’s latest analysis using ‘single touch payroll’ data has shown that workers that moved jobs typically experienced pay increase of between eight and 10 per cent.’
‘When workers are in high demand, businesses are more likely to invest in capital, making workers more productive and businesses more efficient.’
‘It also leads to better job matching, moving higher skilled workers into higher skilled jobs. All of this helps to lift productivity.’
He said the pandemic has brought about fundamental changes across the economy, providing a unique opportunity to assess Australia’s productivity challenges and opportunities.
As such, Mr Frydenberg has asked the Productivity Commission to commence its second five yearly productivity review.
‘With a post-pandemic economy as the backdrop, the PC is being tasked with developing an actionable roadmap to assist governments to make productivity enhancing reforms,’ the treasurer will say.
In the last three months, a record number of around 300,000 workers say they left a job because they were looking for better opportunities. Pictured: A worker loads a still used to make gin at Four Pillars Distillery in Healesville in Victoria
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‘It will identify priority sectors for reform, including data and digital innovation and workforce skills.’
The review will be completed over the next 12 months.
Mr Frydenberg is also expected to warn that unprecedented levels of economic support can’t continue forever.
The treasurer will say the level of government intervention must not become entrenched and a permanent feature.
‘Continued support at crisis levels would do more economic harm than good,’ he will say.
However, Mr Frydenberg is set to provide tax breaks for business and individuals who use rapid antigen tests to be able to attend work.
In his speech on Monday, he will tell the AI Group the government is taking action to remove uncertainty around the tax treatments of these tests.
‘Today, I’m announcing that we will ensure that Covid-19 testing expenses are tax deductible for testing taken to attend a place of work, giving businesses and individuals more clarity and assurance,’ Mr Frydenberg will say.
Mr Frydenberg will make the announcement on Monday while addressing the Australian Industry Group
‘We will also ensure that fringe benefits tax will not be incurred by employers where Covid-19 tests are provided to employees for this purpose.’
Meanwhile the Australian Bureau of Statistics will update its December retail trade report on Monday to include the quarterly spending result.
While the ABS has already reported a 4.4 per cent drop in sales for the month of December, economists’ forecasts point to a 8.1 per cent increase over the quarter.
Household spending makes up a large proportion of the quarterly economic growth result, which will be contained in the December quarter national accounts due on March 2.
A leading indicator to future employment will also come on Monday with the release of the ANZ job advertisement series for January.
Source: Daily Mail
