State of the economy after cuts to JobSeeker and JobKeeper

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The end of September will see a reduction in both JobSeeker and JobKeeper payments. This will mean that, for the first time since March, businesses will be not be able to rely on the support provided by these payments.

A survey conducted by a financial analytics company showed many that small and medium businesses owners don’t expect to be trading in 6 months time. While some industries are performing well (given the circumstances), other industries are suffering a lot more.

Particularly, businesses in arts, recreation, accomodation and food expect that the negative effects of the pandemic will continue to be harsh. This is especially the case for businesses in Melbourne, where recovery had begun before the second wave, following which businesses were thrown back into loss.

Businesses will be forced to face the challenges of adopting Covid-friendly systems whilst not receiving the support they have had throughout the year from the government.

Despite these clear determinants posed by many critics, the government is adamant on reducing JobSeeker and JobKeeper payments in order to prevent individuals from saving their money instead of spending it.

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