Deloitte report finds the structure of South Australia’s economy has helped insulate its job market against the COVID-19 pandemic
The first half of this year has been a tough time for a lot of people – but the state’s success in containing the virus should mean we’re past the worst of it already, says a Deloitte report.
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South Australia will suffer “less pain than the average” state as a result of the COVID-19 pandemic, Deloitte Access Economics says, but 2020 is still “a shocker of a year” with families struggling with high debt, high unemployment and low confidence.
The firm says the nation’s pandemic-driven recession may be “already past its worst”, and our “relative success” in keeping infection numbers low means we have more scope to open up the economy.
On the positive front for SA, Deloitte partner Chris Richardson says we can expect “less pain than the average”, with the makeup of our economy working in our favour, coupled with our low case numbers.
“That allowed confidence back in, and a relatively rapid speed of opening up,’’ Mr Richardson said.
A Deloitte report to be released on Monday, entitled Business Outlook: Fast crisis, slow recovery, says the structure of SA’s economy has helped insulate its job market somewhat.
“Partly it’s about bullets dodged. Although SA felt pain from closed international borders (and the missing migrants, tourists and foreign students that led to), the state isn’t as strong in these areas anyway. That meant it had less to lose.’’
And of SA’s approximately 800,000 workers, “close to half can be considered relatively ‘safe’ as public sector or essential services jobs’’.
“And this has meant that when it comes to jobs and wages, South Australia has performed better than the national average. On a positive for families, the property market has picked up over the past year, with Adelaide’s housing values reaching a record high in May.”
SA’s economy, measured by gross state product, is expected to have shrunk by 1.4 per cent in the past financial year, and will grow by just 0.2 per cent this year before a big jump of 4.3 per cent in 2021-22. The national economy is expected to shrink by 0.4 per cent this financial year before a 5.3 per cent jump.
While SA is expected to do better than states such as Victoria and Queensland, it’s a case of less pain, not no pain, as the virus has “taken a sledgehammer to Australia’s economy’’.
Victoria is predicted to be the worst affected, due to the current spike in cases and its dependence on migration and foreign students. Mr Richardson said an ongoing wage subsidy would be needed once JobKeeper stopped in late September, limited to a smaller number of businesses.
In tune with city revival
Musicians and DJs will play pop-up gigs around the CBD and North Adelaide as part of a $212,000 project to support the struggling arts sector and bring people back into the city.
Adelaide City Council and the State Government have begun a series of solo and duo acoustic performances on Fridays and Saturdays.
Adelaide Liberal MP Rachel Sanderson hoped the program would continue to bring people back into the city and stimulate the economy.
“After what has been a really tough few months for many, this initiative will no doubt bring vibrancy and patronage back to the city,” Ms Sanderson said.
There are two separate parts of the project – Music in the Streets on Friday afternoons and Winter Weekends on Friday and Saturday nights.
There will be fire pits installed on weekends to help keep those enjoying the sounds of the performers warm.
Adelaide Lord Mayor Sandy Verschoor said the initiative would support both performers and traders.
“(It) gives our musicians a paid opportunity to get back out there and play in front of people – socially distanced of course – while supporting our music and hospitality scene to grow and thrive,” Ms Verschoor said.
For more details call cityofadelaide.com.au/music
- Celeste Villani