The Victorian economy hit hard by the second wave

Every day new economic data is released showing that the Victorian economy has been hit the hardest by the harsh lockdowns put on Victorians caused by the bungled hotel quarantine debacle.

Today Sensis business confidence figures show that Melbourne small and medium businesses are worried about the future, with 38 per cent of businesses worried about their business over the next 12 months. This lack of confidence is well ahead of Sydney, where 28 per cent are worried. 

The survey found that Victorian small and medium businesses were the least optimistic about the outlook of their business of all states. Victorian small businesses are also the most pessimistic about their local economy of all states, with 66.5 per cent believing the Victorian state economy will be worse in 12 months.

The most recent Payroll Jobs data from the Australian Bureau of Statistics show that the number of payroll jobs in Victoria fell by 1.2 per cent over the last two weeks of July. The Victorian result is the worst of any state or territory and much worse than the national average of -0.1 per cent.

The Payroll Jobs data is a particularly dreadful number for women in Victoria, being down 1.6 per cent over the second half of July, compared to a 0.3 per cent drop for women nationwide.

Since the start of the pandemic, payroll jobs in Victoria are down 6.7%, which means that 1 out of every 15 people in work in Victoria before COVID-19 have now lost their jobs.

Since mid-March, every sector of the Victorian economy has fared worse than the rest of Australia except utilities. 

Comments attributable to Shadow Treasurer, Louise Staley:

“One-in-fifteen Victorians previously in work has now lost his or her job since this pandemic began. Due to the second wave in Victoria caused by the Andrews Labor Government’s bungling of hotel quarantine, more unemployment pain is yet to come.

“One-in-eight Victorian small and medium business will never reopen due to the harsh lockdowns made necessary by the Andrews Labor Government’s bungling of hotel quarantine.

“We know that Victoria’s economy was in recession before this pandemic. Since COVID-19 hit, we have seen no plan from Daniel Andrews and Labor to get Victorians back in business and back to work and as a result, business confidence is well behind other states. 

“Victorians deserve a government with a real plan to get them working again and our economy going again.”

Media contact:   Joshua Morris   0409 931 430   joshua.morris@opposition.vic.gov.au