Job ads and fuel sales plummet as coronavirus crisis rages
Labour market dives with coronavirus shutdown that is already inflicting damage to petrol sales across Australia.
Job ads have dropped by almost two-thirds as the labour market continues to take a beating from the economic shutdown caused by coronavirus, which is already inflicting damage to petrol sales across Australia.
National job ads data obtained from online recruiting platform SEEK indicate job ad volumes have progressively worsened since the start of March, hitting a 65.3 per cent drop for the week to April 5, compared with the same period last year.
SEEK managing director Kendra Banks described the virus impact on jobs as “swift and extreme”, adding to pressure from bushfires earlier in the year and an already weak economic outlook.
She said Victoria and NSW had experienced the largest declines, which were down 71.6 per cent and 67.4 per cent, respectively.
“Two distinct changes are occurring in Australia’s labour market right now,” Ms Banks said.
“Unsurprisingly and unfortunately there is a mass reduction in the number of jobs available at a national level, while simultaneously there is an urgent demand for workers in specific industries.”
A job prospect survey conducted by SEEK found that only 53 per cent of Australian’s feel positive about their future job prospects.
The survey also indicated job security had dropped from 66 per cent in January to 53 per cent at the end of March.
Economy out of gas
Sluggish economic productivity is permeating into the country’s petrol consumption, with major fuel retailers experiencing sharp declines in sales.
Coles Express has incurred a 40 per cent drop in petrol sales across its network as COVID-19 slows vehicle use on Australian roads, with owner Viva Energy lowering spending guidance and delaying the on-market portion of a $680m share buyback.
After Caltex flagged a sharp fall in petrol sales on Monday, its rival Viva said volumes had declined by 30 per cent to 40 per cent at its 1290-strong Coles Express network.
Viva has also delayed plans for the on-market portion of its $680m buyback after deferring the off market component on March 27.
The buyback was sparked on February 24 after it sold out of its petrol station property trust, but Viva said it was now on hold due to economic volatility.
"Due to the ongoing economic uncertainty, the company has determined to delay the commencement of the on-market buyback to allow it to monitor the longer-term impacts of COVID-19," Viva said.
Capital spending for the 2020 year has also been sharply lowered to $60m to $80m from a prior $140m to $160m range with a number of cost saving measures being pursued across the business in response to weaker fuel demand.
"The reduced capital expenditure will enable the company to preserve cash and minimise the risk associated with commencing projects in an environment where social distancing and infection management restrict the ability to have large gatherings of workers."
A major maintenance turnaround at its Geelong refinery is also under review due to COVID-19. It has been scheduled from late August to October but would be difficult to safely conduct due to measures necessary to manage the virus.
"Changes to the scope, timing and method are expected to be necessary to manage these risks and preserve cashflow by reducing the required capital investment during 2020. We will also closely monitor the longer-term refining margin outlook which continues to evolve. The company expects to complete this review and update the market before the end of June 2020."
Viva's Geelong refining margin for the first quarter fell to $US2.70 a barrel from $US4.90 a year ago due to higher crude premiums from deals struck at the end of 2019 and lower regional margins from softer global demand.
