BCA’s big ask: create two million jobs to revitalise economy

Business needs to create 2 million jobs in a ‘colossal ask’ as part of the nation’s recovery, says the BCA.

Business Council of Australia chief executive Jennifer Westacott. Picture Kym Smith

Businesses will need to create two million jobs in a “colossal ask” as part of the nation’s recovery from the coronavirus crisis, according to the Business Council of Australia.

Calling for a broad investment allowance to be rolled out to kickstart the recovery, Business Council chief executive Jennifer Westacott and board member Alison Watkins said companies needed to be confident to invest.

“The economic recovery task ahead of us is bigger than anything the nation has had to confront since the Second World War. So too are the opportunities,” they wrote in The Australian on Monday.

“Business is up to the challenge. It is business that will need to create the jobs and make the necessary investments. A strong business-led recovery is essential to securing the futures of all employees, customers, shareholders and suppliers.”

To return living standards, wages and economic growth to an upward trajectory, businesses would need to create as many as two million extra jobs to get people off JobKeeper and JobSeeker, they flagged.

“The last time Australia created two million new jobs it took close to 10 years. This time, business will need to achieve this task sooner while adjusting to a new abnormal,” Ms Westacott and Ms Watkins said.

The calls for a business-led recovery from the Business Council come days before the federal Treasurer is due to hand down an economic statement in which he is expected to extend the JobKeeper scheme beyond September.

“It is clear the economy will need further economic support and we will continue to do what it takes to keep businesses in business and Australians in jobs,” Josh Frydenberg told The Australian last week.

“As we have done every step of the way, we will calibrate our response to the economic and health conditions that we face. We know that many sectors will take considerably longer to recover, even after restrictions are eased,” he warned.

Businesses were ready to make the most of the recovery, but they had to be confident to invest, Ms Westacott and Ms Watkins wrote.

“A broad-based investment allowance of 20 per cent for all businesses, covering all forms of investment, would kickstart business investment and have a multiplier effect through the economy when it is most needed,” they said.

While declaring business will do the heavy lifting in job creation, Ms Westacott and Ms Watkins also called on governments to embark on targeted spending, including bringing forward “shovel-ready infrastructure projects”.

“Fast-tracked and streamlined planning approvals for major projects … should complement this,” they said.