Despite Forecasting Rising Unemployment, Westpac Expects Jobs To Increase In Some Sectors
Westpac has forecast that there will be major job losses in the June quarter as a result of the COVID-19 pandemic, estimating that the unemployment rate will reach 11.1%.
The bank expects that accommodation and food services, retail trade, arts and recreation services, manufacturing, transport and warehousing, real estate services, construction, and professional services will be the hardest hit in terms of job losses, ranging from -40% in arts and recreation, to some -8% in construction.
However, they expect that there will be increasing employment in some sectors. Westpac has estimated employment in telecommunications will rise by 14%, health care (10%) and public administration (5%).
In addition, although employment in accommodation and food services will suffer, the ‘take away’ component in the sector is expected to be boosted.
Westpac expects jobs in the following sectors will be relatively stable during the June quarter: agriculture, mining, utilities, and finance and insurance.
Looking further ahead, Westpac’s report read: “Net additional job losses are expected to be minimal in the September quarter but little progress is expected to be made in reducing the unemployment rate.”