Australian government expands wage subsidy programme as COVID-19 cases surge

Australia, on July 16, announced that it would be injecting 1.5 billion Australian dollars in wage subsidy programmes to counter rising unemployment amid the coronavirus pandemic. Unemployment in the country rose to 7.4 per cent in June, despite the government’s constant subsidies.

The Scott Morrison led government, on July 16, announced that it would substantially extend a programme to subsidize the wages of apprentices. The funds would reportedly double the number of apprentice workers covered under the scheme taking the total count to1, 80,000 across all sectors. The new programme would also extend the subsidies from September this year to March 2021.

Jobs grew by 2,10,000

This comes as Morrison welcomed the data evidencing that his government supports packages were working. As per the latest data, jobs in the country grew by more than 2,10,000 compared to the declines in May and April. The new jobs had also surpassed analysts’ expectation of 1,12,000 jobs.

Meanwhile, the coronavirus pandemic is rapidly surging in Australia with many fearing a second wave in the country. On July, 16, the authorities reported 327 new COVID-19 cases, a surge mainly resulting from rising infection in Victoria.

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Morrison has said that a response to the second wave of coronavirus would not be shutting down the country. While addressing the nation on Melbourne Radio on July 15, he added that, however, his government would not be withdrawing support to those in need.

The recent spike in coronavirus cases in the southern state of Victoria has fueled a renewed debate on whether the country should respond to the latest outbreak with forceful lockdown or not. While the Prime Minister asserted that elimination of the infection was impractical, Victoria state’s chief health officer Brett Sutton said that that the idea was “worthy of consideration”.

Speaking to international media reporters, Sutton said he would “love” elimination, but now wasn’t the time to make “a detailed examination about its feasibility”. Meanwhile, Morrison said that the government would continue to provide monetary aid to jobseekers and job keepers, however with some adjustments.

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 Image credits: AP