A report tabled at today's Governance and Economics Committee noted that the impact of COVID-19 on the Cairns economy was less severe than originally anticipated and the speed of economic recovery much quicker than initially forecast.
However, the report also highlighted that while the Cairns economy is in transition, it remained highly susceptible to COVID-19 suppression measures, such as travel restrictions and lockdowns with the tourism sector particularly hard hit.
The economic recovery in Cairns has mirrored that of the state and nation in exceeding initial expectations, largely due to relatively good health outcomes and unprecedented policy support, including JobKeeper, and boosting cash flow for employers.
Cairns GRP (gross regional product) was initially forecast to fall by 16% in the June quarter 2020, however, the local economy performed better than forecast with a contraction of 7.7% in that period.
Despite this result, Cairns, as expected, was still one of the hardest hit regional economies in Australia.
The report also noted that Cairns is the 8th most diversified local government authority (LGA) economy in Australia, and second in Queensland behind the Brisbane LGA.
While the city's economic diversity has increased significantly over time and aided recovery, recent lockdowns in New South Wales, Victoria and South East Queensland, as well Cairns' current three-day lockdown, have curtailed the city's resurgence.
The unemployment rate of 6% (March 2021) was well below the 12% initially forecast, but still above pre COVID-19 levels (4.3% December 2019).
Job advertisements in Far North Queensland have however outstripped pre-pandemic levels, with an increase of 30% (or 1,196 job ads) between March 2020 and April 2021. Unfortunately, elevated job advertising has not translated into strong jobs growth.
