Shock real figures: how COVID-19 will cost the Gold Coast thousands of jobs

New data shows the Gold Coast’s real unemployment rate soaring to a shocking new high due to the impact of COVID-19 restrictions.

THE Gold Coast’s real unemployment rate will soar to almost 20 per cent due to the impact of COVID-19 restrictions, according to new data.

The council this month will kick start a KPMG training initiative to provide support for Coast traders aware potential unemployment could reach more than 60,000 jobs.

An empty carpark outside the closed Dreamworld on the Gold Coast, in May — at the peak of restrictions. (AAP Image/Dan Peled)

An economy, stimulus and recovery update report debated by city councillors in closed session provides the following key findings of the impact of coronavirus on the economy:

* The city’s gross regional product for the financial year ending 2018-19 was $37.24 billion, up 2.6 per cent from 2017-18.

* Post COVID is expected to produce a 16.9 per cent decline for the fourth quarter of 2019-20.

* Local jobs are forecast to fall by 10 per cent in the June quarter. This will mean a loss of 30,581 local jobs.

* If the JobKeeper recipient impacts are included then the unemployment fall is estimated at 19.3 per cent, which equates to 58,899 jobs.

The report found the Coast had 69,255 registered businesses with almost a third being smaller operators employing between one and 19 staffers — and they face the biggest struggle.

Palazzo Versace when it closed at the start of the Covid 19 outbreak. Picture: Adam Head.

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“A report will be presented to the economy, tourism and events committee in October to provide an update on industry impacts and recommend investment initiatives,” the recovery update said.

The KPMG advice sessions could provide one-on-one workshops to help manage the impact of COVID-19 on the small business sector.

Many businesses “lack strategic skills to survive” and they had poor cash flow along with bad debts signalling potential failure.

Some operators lacked experience in negotiating rent agreements while others did not know how to access government help, the recovery update said.

Councillors supported the allocation of funding to the training initiative. The amount has not been disclosed.

Meanwhile, the economic impact of the virus took centre stage during Question Time as state parliament resumed with Opposition leader Deb Frecklington accusing Labor of not having an economic plan because its own review showed 72,000 jobs would be lost.

Ms Frecklington also accused Labor of planning for secret taxes but Premier Annastacia Palaszczuk admitted the government was in “uncharted waters” because the Commonwealth had not delivered a federal budget.

Opposition leader Deb Frecklington visiting Coast businesses. Picture: Lawrence Pinder

Treasurer Cameron Dick said COVID-19 had “struck an economic hammer blow around the world” and while the State was not immune it was performing better than other states.

“Last week we learned that the Australian economy had entered recession, contracting in the June quarter by seven per cent. The contraction in state final demand in Queensland was 5.9 per cent,” he said.

“This is grim enough but better than in New South Wales and Victoria, where the contraction was around 8.5 per cent.

“Retail trade in Queensland also strengthened in July, increasing by five per cent, the second-highest increase in the nation. ABS building approvals data from last week show approvals for houses in Queensland rose by 17 per cent in July, more than double the national average.

“ABS data also revealed that the number of jobs in Queensland has grown since mid-April by 5.4 per cent, compared to the national figure of four per cent. These are the outcomes of strong borders.”