Double digit unemployment for the next few years, and a plunge in Gross State Product and slow recovery are the headline findings of a new Flinders University analysis of the impact of the COVID-19 pandemic on South Australia.
It suggests economic stimulus will be required beyond the expected six months of the JobSeeker and JobKeeper support to assist workers, families, businesses and organisations to endure the extended effects of the tough measures that have been necessary to curb the virus’ spread.
The Director of Flinders University’s Australian Industrial Transformation Institute Professor John Spoehr says it’s a recession and the outlook is grim, urging the state and federal governments to consider all options.
‘There’s no way of sugar coating it – the measures we have had to take to tackle the coronavirus crisis are having a profound impact on our state’s economy and employment and will continue to do so until at least 2024.
‘The State government has the opportunity to leverage this with an economic recovery and jobs plan underpinned by further investment in social and physical infrastructure, including industry catapults to accelerate the uptake of advanced technologies and skills.
Professor Spoehr says courage was needed to halt the coronavirus in its tracks, and similar courage is central to overcoming the ensuing calamity.
“Considerable investment and stimulus will be fundamental to durable recovery. There are fates worse than debt at times of great economic hardship, particularly when interest rates for government are at historic lows’ Professor Spoehr says.
Karen Ashford, Director of Media and Communications
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