ACOSS is concerned by rising unemployment, with unemployment rate having risen to 4.5% this week – the highest level since the pandemic – and some scenarios suggesting it could rise sharply over the next year.
"With the unemployment rate increasing to 4.5% in this week's figures, ACOSS is already concerned that Treasury and RBA forecasts of little change in unemployment may prove too optimistic," said ACOSS CEO Cassandra Goldie.
"There are already over 100,000 more people unemployed than four years ago when interest rates started to rise, and the RBA expects unemployment to rise to 4.8% by 2028 – that's another 50,000 people out of paid work.
"There are better ways to curb inflation than sacrificing more people to unemployment. The people most affected by rising unemployment and inflation are those living on the lowest incomes in our community, receiving poverty-level income support payments like Jobseeker. These are people who were offered no additional financial support in the Federal Budget.
"The Government must act urgently 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 (about 60% of the minimum wage);
Invest in fundamentally reforming employment services, to provide people with real support to find suitable paid work. This work has begun.
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
