Coronavirus: JobKeeper cut could get workers back in the saddle

For some businesses recovering from the impact of coronavirus, higher JobSeeker payments have made it harder to find staff

Big River Ranch owner Rex Smith and his wife, Sue. Picture: Justine Rowe

Rex Smith, the owner of the Big River Ranch in the Western Australian tourist town of Kalbarri, is among those small business owners who now can’t wait to see the federal government’s JobSeeker payments cut back.

In contrast to tourism businesses in many other parts of Australia, Mr Smith’s business has been inundated with would-be customers in the past few weeks as Western Australians flock to holiday destinations around the state.

But many of his horses have been left standing idle and dozens of customers have been turned away, with Mr Smith struggling to secure enough workers to keep up with demand.

For some potential guides, the lure of inflated JobSeeker payments has been too strong.

“I had one particular girl who was on JobSeeker, and she decided she’d be better off going back to Bunbury, get the $550 a week and do a little bit of track riding,” Mr Smith said.

“Hopefully (the cut to JobSeeker) will get some people off their arse and into work.”

While Western Australia’s economy has fared better than most through the coronavirus crisis, with its resources sector continuing largely unaffected and the virus itself having a limited impact, the state has still experienced a sharp rise in unemployment.

The unemployment rate in Western Australia last week hit 8.7 per cent, the second-highest rate of any state in Australia.

Aaron Morey, the chief economist at the Chamber of Commerce and Industry Western Australia, told The Australian that while the increased JobSeeker payments had provided an incentive for some people not to seek work, Tuesday’s decision to extend the JobSeeker and JobKeeper payments was a prudent step at a time when unemployment in Western Australia was still high.

“The jobs market figures are like a Jackson Pollock: they’re all over the place and they’re hard to interpret,” he said.

Western Australian Premier Mark McGowan welcomed the extension of the program, saying it would provide greater certainty for businesses and workers through the next few months.

“I congratulate the commonwealth government, this is a good arrangement,” he said.

“They’ve extended it, they’re making it viable, and they’re ensuring it’s there for a longer period of time.”

Mr Smith, meanwhile, will continue scouring for staff willing to work in his remote corner of Western Australia.

He has often relied on backpackers to help fill gaps during periods of high demand, but their numbers are also well down due to international travel restrictions.

“There is a bit of strenuous work when you’re saddling horses up and unsaddling, but the horseriding itself is fantastic and you couldn’t ask for a better job if you like horses,” Mr Smith said.

“There’s not a better backdrop to be employed at.”