Billion-dollar boost as nation ‘roars back’ to life

Australia is in the midst of a major spending spree, with new data revealing a surprising boost to jobs and the economy after marathon lockdowns.

Australians are splurging after being freed from marathon lockdowns. Picture: Paul Jeffers

The end of extended lockdowns in Australia’s two biggest cities has kickstarted a $1bn consumer spending spree and emboldened employers to hire more workers.

The Sunday Herald Sun can reveal Australians splurged an extra $1bn in the first week of November compared to the same time in 2019, with spending exceeding pre-lockdown levels in Victoria and New South Wales as people were freed to shop and eat out again.

New Australian Taxation Office data also shows the number of new workers hired by businesses leapt by 13 per cent nationwide in the fortnight to October 24.

Treasurer Josh Frydenberg said Australia was now set for “a bumper Christmas” with Melbourne now “coming back”.

“After the long lockdowns in Victoria and NSW, the jobs market is heating up as we head into summer. Confidence is on the rise, optimism is in the air and the economy is ready to roar back,” the Treasurer said.

“Australian households have accumulated over $100bn since the start of the pandemic which is money that will be spent across the economy in tourism, hospitality and retail, helping to create jobs and giving momentum to our economic recovery.

In 10 days, Victoria is set to hit 90 per cent double dose vaccinations, ending indoor and outdoor restrictions, and masks will only be needed in high risk settings such as hospitals and public transport.

Mr Frydenberg called on workers to get back into the office to drive the economy in the city centre.

Federal Treasurer Josh Frydenberg has revealed Australia’s economy is bouncing back after extended lockdowns. Picture: Sarah Matray. Picture: David Crosling

“That will be a massive confidence boost for the many businesses in the city.

“At the heart of our city is the CBD and while it has been hit hard I am confident about its future.’’

A Treasury analysis of bank data found spending at the start of November was 20 per cent above the corresponding week two years ago.

The number of new hires was up 25 per cent in NSW and 15 per cent in Victoria in late October compared to the previous fortnight, according to the ATO’s single touch payroll data.

There are now more than 250,000 jobs advertised online as the labour market comes back to life, with business leaders across key industries including hospitality warning labour shortages are already holding them back.

Shadow Treasurer Jim Chalmers warned the recovery would be “patchy”, with two million Australians struggling to find enough work while businesses also faced skills shortages.

“There is a real mismatch,” he said.

But Mr Frydenberg said there was “good reason to be optimistic” as online job ads increased by almost 8 per cent last month.

According to the National Skills Commission, the number of job vacancies is now 49 per cent higher than pre-pandemic levels, having leapt by 15.2 per cent in Victoria and 16.9 per cent in NSW last month.

While the unemployment rate climbed 0.6 per cent to 5.2 per cent last week, the strength of the recovery saw the Reserve Bank revise its forecasts, with unemployment now expected to be at 4 per cent by the middle of 2023.

“The more than $19bn in economic support provided by the Morrison government to individuals and businesses when Delta struck has enabled a strong private sector-led recovery now that restrictions have eased,” Mr Frydenberg said.