Number of Victorians receiving Jobseeker and Youth Allowance has increased by nearly 50 per cent during Covid

The chilling effect of Victoria’s rolling lengthy lockdowns can be seen in one crucial number, which has increased nearly 50 per cent during Covid.

The number of people receiving welfare payments in Victoria, the most locked down place in the world, has increased by nearly 50 per cent since the initial outbreak of coronavirus early last year.

A startling 81,853 more people received Jobseeker or Youth Allowance in August this year than February last year — an increase of 46 per cent.

There were 176,611 recipients people receiving Newstart payments – the former name for Jobseeker – and Youth Allowance across Victoria in February 2020, before the worst of the pandemic hit.

Eighteen months of rolling lockdowns and restrictions later, that number skyrocketed to 258,464 in August, according to data from the Department of Social Services.

The number of people receiving welfare payments in Victoria has increased by 46 per cent since February last year. Picture: Katrina Bridgeford

The figures have continued to climb in the state in recent weeks, with 1.9 per cent more people receiving Jobseeker or Youth Allowance in August compared to July.

There were 149,100 unemployed people in Victoria in August, according to the ABS – more than 100,000 less than the number of people receiving Jobseeker and Youth Allowance.

The difference was likely the result of recipients being unable to work the same hours compared to before the pandemic, and needing to claim benefits to cover their living costs.

While Australia’s unemployment rate dropped by 0.1 per cent in August to 4.5 per cent, the change was attributed to fewer people participating in the workforce, rather than an overall stronger labour market.

“The fall in the unemployment rate reflects a large fall in participation during the recent lockdowns, rather than a strengthening in labour market conditions,” ABS’s head of labour statistics Bjorn Jarvis said.

Businesses across Melbourne had to close during lockdown, forcing thousands out of work. Picture: NCA NewsWire

“Throughout the pandemic we have seen large falls in participation during lockdowns — a pattern repeated over the past few months. Beyond people losing their jobs, we have seen unemployed people drop out of the labour force, given how difficult it is to actively look for work and be available for work during lockdowns. This has also coincided with a temporary pause in mutual obligations for jobseekers living in lockdown areas.”

Recipients of the Jobseeker payment recently began receiving an extra $50 per fortnight in the government’s biggest year on year increase to unemployment benefits since 1986.

The base rate of Jobseeker was boosted to $620.80 per fortnight.

Originally published as Number of Victorians receiving Jobseeker and Youth Allowance has increased by nearly 50 per cent during Covid