Big drop in JobSeeker recipients as Victorian economy recovers

The number of Victorians on the dole has fallen to the lowest level since April, but the economic pain continues in some suburbs.

The number of Victorians on the dole has fallen to the lowest level since April last year, in another sign the state is getting back to work.

The Herald Sun can reveal there were 340,409 Victorians on the JobSeeker payment at Christmas, compared to a peak of 413,341 Victorians in August.

But new government data shows there are still 146,823 more Victorians receiving unemployment benefits now than before the pandemic hit last year.

The economic pain has been slower to heal in Melbourne’s outer suburbs, where the ongoing reliance on JobSeeker is at its highest.

More Victorians are getting back to work as the economy recovers after COVID lockdowns. Picture: AAP

In Dandenong, there are 3101 residents on the unemployment benefit, and 2585 in Cranbourne East, 2404 in Truganina, 2404 in Roxburgh Park and Somerton, 2398 in Melton South, 2222 in St Albans North and 2122 in Delahey.

Pockets of disadvantage also persist in regional Victoria, with 2967 people on JobSeeker in Corio and Norlane, and 2005 in Ballarat South.

Nationwide, there are still 1.32 million people on the JobSeeker payment, which is worth up to $565.70 a fortnight plus a $150 coronavirus supplement which is due to run out at the end of March.

On Thursday, Daniel Andrews urged Scott Morrison to permanently increase the $40-a-day JobSeeker rate, saying he had spoken to the Prime Minister about what support would be needed this year.

“I would hope that every politician across Australia acknowledged that the pre-pandemic rate was not enough and needed to go up,” the Premier said.

“There has to be a genuine search for employment, there has to be a very important partnership between the person who’s getting that unemployment benefit and the genuine desire to go and find a job.”

The federal government has been urged to permanently increase the $40-a-day JobSeeker rate. Picture: Andrew Henshaw

Mr Andrews warned Victorians would face added financial stress as they were required to start paying off their loans that had been deferred by the banks.

The number of Victorians on JobSeeker fell by 16 per cent between October and the end of the year as Melbourne’s lockdown rules were eased.

More workers were also able to move onto the JobKeeper wage subsidy scheme when businesses were forced to close or limit operations.

NUMBER OF VICTORIANS ON JOBSEEKER

March: 193,586

April: 312,895

May: 389,229

June: 384,126

July: 396,180

August: 413,341

September: 401,168

October: 405,879

November: 385,827

December: 340,409

Thornbury Picture House owner Gus Berger. Picture: Josie Hayden

AUSSIES RELYING ON PART-TIME JOBS

Nine out of ten Australians who lost their jobs during the pandemic are now back at work, although many are now relying on part-time roles to make ends meet.

New labour force data from the Australian Bureau of Statistics shows the number of people with jobs at Christmas was 88,000 below pre-pandemic levels, but 784,000 higher than in May.

Nationwide, the unemployment rate finished the year at 6.6 per cent, having defied market expectations and fallen by 0.2 per cent. Victoria’s unemployment rate improved to 6.5 per cent last month, but underemployment remained an issue.

Australian Council of Social Service acting chief Edwina MacDonald warned with only two-thirds of full-time jobs lost during the recession restored, there was “a long way to go”. Treasurer Josh Frydenberg said while “the road ahead will be hard”, the figures were “very encouraging’’.

Thornbury Picture House owner Gus Berger is “happy to be trading”, despite only being able to fill 42 of the 57 seats at his independent cinema. He said JobKeeper was a “real lifesaver”, with most of his staff staying on.