Major banks warn workers in Sydney branches could lose one in ten jobs as food and petrol prices rise

Major banks warn one in ten workers will lose their jobs in Sydney lockdown as skyrocketing food and petrol prices add to their misery

  • Banking analysts predict up to 300,000 jobs will be lost in extended Sydney lockdown
  • ANZ’s initially projected job losses totaling 60,000 workers is further stretched
  • Food and drink prices also rose 0.5 percent in the September quarter

A tenth of workers are likely to lose their jobs during Sydney’s prolonged lockdown and soaring inflation and prices are making it difficult for them, analysts warn.

Major banks predict that 300,000 jobs could be lost during the lockdown, which will now last at least until August 26.

Commonwealth Bank said one in ten employees will lose their job, and ANZ’s previous tip of 60,000 has come true many times more.

“This number is now likely to be higher and we expect the recovery to be delayed by at least a month, until October,” said ANZ senior economist Felicity Emmett.

A tenth of workers are likely to lose their jobs during Sydney's prolonged lockdown and rising inflation and prices are putting them in a tough spot, analysts warn

A tenth of workers are likely to lose their jobs during Sydney’s prolonged lockdown and rising inflation and prices are putting them in a tough spot, analysts warn

CBA economics chief Gareth Aird expected the Australian unemployment rate to peak at 5.6 percent in October, after falling in the first half of this year.

Substantial policy support will again be needed to ensure that the economic recovery is rapid once restrictions are relaxed, he said.

The rising unemployment rate was attributed to the fact that those who lose their jobs were unable to find new ones due to the general economic downturn caused by the lockdown.

Unemployment rose by 50,000 people in Sydney during Australia’s first nationwide lockdown in March to May 2020.

To make matters worse for those who have no income and have to survive on the government payments of $750 a week, the costs are also rising.

The rising unemployment rate was attributed to the fact that those who lost their jobs were unable to find new ones due to the general economic downturn caused by the lockdown

The rising unemployment rate was attributed to the fact that those who lost their jobs were unable to find new ones due to the general economic downturn caused by the lockdown

The rising unemployment rate was attributed to the fact that those who lost their jobs were unable to find new ones due to the general economic downturn caused by the lockdown

Annual inflation has reached 3.8 percent, the highest level since before the global financial crisis.

Higher inflation, along with other factors, led to a 0.5 percent increase in the price of food and beverages, gasoline by 6.5 percent and furniture by 3.8 percent.

Vegetable prices rose 5.5 percent and fruit 4.7 percent, attributed to a shortage of pickers due to border closures and natural disasters.

The NSW government’s food stamp scheme offset price increases for takeaway and fast food by 0.7 percent and restaurant prices by 0.6 percent.

At the same time, wage growth in Australia rose by just 1.5 percent, less than half the rate of inflation.

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