Westpac Bucks Trend, Predicts Jobs To Increase In ‘Some Sectors’
SYDNEY: Westpac has forecast major job losses by Australian businesses in the June quarter, as a result of the COVID-19 pandemic,. It estimates the Aussie unemployment rate will reach 11.1pc.
The bank expects that the hardest-hit services will include accommodation and food services, retail trade, include accommodation, arts and recreation, manufacturing, transport and warehousing, real estate services, construction and professional services, with job losses ranging from 40 percent in arts and recreation, to around 8pc in construction.
However, Westpac expects there will be increasing employment in some sectors. It estimates employment in telecommunications will rise by 14pc, health care by 10pc and public administration by 5pc.
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 agriculture, mining, utilities, and finance and insurance will be relatively stable during the June quarter.
Looking further ahead, Westpac says: “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.” – ChannelNews