Treasurer to make big jobs push in review

| December 15, 2021

Josh Frydenberg claims one million jobs will be created over the next four years as a result of the Morrison government’s economic strategy.

The treasurer will release his mid-year budget on Thursday, which economists expect will see an improved budget position against the backdrop of a rapidly recovering economy.

Deloitte Access Economics expects deficits will have improved by $103 billion over the four-year budget estimates.

This would see the 2021/22 budget deficit reduced to $91.1 billion from $106.6 billion forecast in the May budget, and to $61.8 billion in 2022/23 rather than $99.3 billion.

This could be Mr Frydenberg’s last major economic showpiece should Prime Minister Scott Morrison head to the polls in March rather than May, and before the 2022/23 budget planned for March 29.

Mr Frydenberg said Treasury has estimated about one million jobs will be created over the next four years.

“Saving jobs and creating jobs is a top economic priority,” he said.

“It’s a pathway to a stronger economy, an improved budget bottom line while being fundamental to a healthy and prosperous society.”

Labor frontbencher Tanya Plibersek pushed back against the estimated jobs figure saying there was no use in creating one million jobs if there are no skilled workers to fill the positions, imploring the treasurer to invest further in tertiary education.

Former Labor leader Bill Shorten added that any wage increase announcement must be taken with a large grain of salt.

“Mr Frydenberg is telling some Christmas fairytales about wages,” he told the Nine Network.

“For the last eight years wages have basically been in the toilet, they haven’t increased at all. Whenever the government says they are going to go up, they don’t go as far up as the government promises.”

Mr Frydenberg is touting a new wave of economic activity off the back of tax cuts and business investment incentives as the baton is passed to the private sector to create more jobs and secure the recovery.

“Business and consumer confidence is up, job ads are at the highest level in 13 years,” he told the Seven Network. 

“(There’s) very strong investment coming from businesses big and small – a sign that people have confidence in our economic recovery.”

Forecasts in the mid-year economic and fiscal outlook are expected to see the unemployment rate cut to 4.5 per cent by the June quarter of next year compared to the estimate of five per cent in the May budget.

By the June quarter 2023 it is estimated to be 4.25 per cent rather than the 4.75 per cent predicted seven months ago.

If achieved, this would represent the first time since before the 2008-2009 Global Financial Crisis that Australia has sustained an unemployment rate of below five per cent, and only the second time since the early 1970s.