New data from the federal treasury shows another 90,000 workers and 10,100 business stopped using the Morrison government’s wage subsidy in February,but a spike in unemployment is expected from this week as the program ends.
![Josh Frydenberg:“JobKeeper was very successful in providing a lifeline to the economy when it needed it most.”](https://static.ffx.io/images/$width_300%2C$height_150/t_crop_auto/t_sharpen%2Cq_auto%2Cf_auto/32ce21987b59ae12e17aeffa2c0487295c3567f4)
Josh Frydenberg:“JobKeeper was very successful in providing a lifeline to the economy when it needed it most.”Rhett Wyman
In Melbourne,an while in Sydney,an are on the line. Across the country,the federal treasury estimated earlier this week the figure would be - though some will find new jobs - because of the contentious end to the subsidy.
Victorian businesses are the,with 38 per cent - about 369,000 people - on the subsidy,with 33 per cent of users,or about 327,000 people.
As many as 3.8 million people were on the program between April and September last year but figures Treasurer Josh Frydenberg released toThe Sun-Herald andThe Sunday Age show 2.8 million employees and about 680,000 businesses have stopped using from JobKeeper- a 74 per cent decline.
Mr Frydenberg said the temporary,“remarkable” program had kept businesses afloat and people employed during the height of the pandemic.
“Now around 680,000 businesses employing more than 2.8 million people have graduated off JobKeeper. Just because JobKeeper has come to an end does not mean the government’s support has,” he said.
“Our economic recovery plan will continue to support the economy through targeted support measures as well as tax cuts,business incentives and a record investment in skills and training and infrastructure.”
JobKeeper was introduced last April as the coronavirus pandemic took hold in Australia and paid $1500 per employee per fortnight for businesses with a turnover of less than $1 billion that suffered an estimated 30 per cent drop in turnover.
Eligibility for the program has been tightened twice in the last six months while the rate paid has been scaled back to $1000 or $650 per fortnight,depending on a worker’s hours.
Unemployment in Australia peaked at 7.5 per cent last year but has since fallen to 5.8 per cent,though significant job losses are expected in some sectors,such as tourism,as the subsidy ends. The events sector has also warned of mass business closures.
Earlier this month,the Morrison government announced which have been particularly hard hit by the pandemic,that would pay half the price of 800,000 flights across the country - though
Treasury secretary Steve Kennedy said the end of JobKeeper “does not mean that there will be a commensurate increase in unemployment”.
“We remain confident that there will continue to be a broad-based recovery in the labour market over 2021,given recent strong employment growth and the decreasing reliance on JobKeeper over recent months,” he said.