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Huge economic cost of shutting down schools


Shutting down schools for classroom learning is having a big impact on the economy according to Scott Morrison.

The Prime Minister has warned allowing children to go back to school is central to getting parents back to work today and even being productive when working from home.

“When it comes to schools, the school shut down … that flows through to around 304,000 jobs,’’ he said.

“When you break it out, the same impact in terms of the percentage decline in gross domestic product and you look at jobs, you can see that for, particularly the hospitality sector, just under 2 per cent fall, but in terms of jobs, 441,000 jobs. That is the sector most affected by all of this.”

Speaking after today’s national cabinet meeting, he warned there was also a huge flow on effect from the closure of restaurants and cafes to suppliers.

CORONAVIRUS IMPACT

* $4 billion a week wiped from economy under current restrictions

* $50 billion total hit May-June, or 10-12 per cent of GDP

* 1 million JobSeeker claims processed

* 5 million people getting JobKeeper

* 1 million people accessing early super

* 384,000 businesses getting $7 billion in cashflow assistance

* $30 billion more cash support to prop up economy over next month

MARCH 14 – APRIL 18

* 7.5 per cent of Australian workers lost their jobs (roughly one million people)

* Wages dropped 8.2 per cent

* One in three accommodation and food sector jobs gone

* 27 per cent of arts and recreation jobs lost

* Electricity, gas, water and waste workers escaped relatively unscathed

* Victoria lost the most jobs and the Northern Territory the fewest

* Tasmania saw biggest wages drop and South Australia the smallest

* 18.5 per cent of Australians aged under 20 lost their jobs

* Australians aged over 70 had their wages cut by 10.7 per cent

BULLETS DODGED

* Eight-week European-style full lockdown would have wiped $120 billion or 24 per cent from GDP

* Full closure of schools and child care for three months would have removed a million adults from the workforce and cost GDP $34 billion

More to come.

— With AAP



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