ACOSS is concerned by the possibility of rising unemployment and risks from any economic downturn by the end of the year, which could arise from the ongoing fuel crisis and its likely flow-on effects.
"While the unemployment rate remains at 4.3% in today's figures, some major banks and other forecasters are speculating that, depending on global events, the unemployment rate could rapidly rise, with some scenarios suggesting we could face an increase to between 5 and 6.5% by the end of this year if a downturn occurs.
"This kind of increase could equate to a rise in unemployment of between 100,000 and 300,000. If this were to occur, the important post-pandemic gains in employment for people would disappear," said ACOSS CEO Cassandra Goldie.
"Since mid-2022, we have already seen a 150,000 increase in people affected, with unemployment rising from 3.5% to 4.3%.
"If unemployment and inflation rise sharply at the same time, the people who will be most affected will be those living on the lowest incomes in our community.
"Our social security and employment services systems are not fit to help people and provide the community with the resilience and support it needs. The Government must act urgently at the Federal Budget to make sure people are protected and we are well-prepared for any potential economic downturn."
ACOSS is calling for the government to:
- Target financial support to people on the lowest incomes through lifting income support payments such as JobSeeker and Youth Allowance to at least $600 per week
- Invest in fundamentally reforming employment services, to provide people with real support to find suitable paid work
- Take immediate action on inflation, including by temporarily capping wholesale gas prices, further reducing health care costs, capping rent increases, and covering solar subsidies on consumers' power bills
