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Federal Government announces plans to change JobSeeker rate as payments return to pre-pandemic levels

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Business news and updates: Documents show that JobMaker only supported 1% of the initial budget

Dynamic Business brings you a daily rundown of the most recent business news and developments from Australia and around the world. Here’s the roundup for October 14:

Big spike in business confidence: NAB survey

According to the most recent NAB monthly business survey results, there was a significant increase in confidence during the month of September as a result of signs that lockdowns would be lifted by the end of October. 

According to a Canberra trader, small businesses are ready to restore some form of normal trading after more than two months of delays that have financially crippled several. 

The reopening of road maps in COVID-19 ravaged states has boosted business confidence, which had been dampened by the Delta wave lockdowns.

Treasurer backs review of Reserve Bank 

 Treasurer Josh Frydenberg believes there is a case to be made for a review of the activities of Australia’s independent Reserve Bank. The RBA does not expect inflation to remain within the target range until 2024.

The Organisation for Economic Cooperation and Development said this month that the RBA’s monetary policy framework should be reviewed, noting that underlying inflation has been below the two-to-three percent target zone since 2015. 

Documents show that JobMaker only supported 1% of initial budget

JobMaker, one of the key elements featured in the October 2020 government budget, pledged $4 billion in taxpayer funding over two years to pay employers to hire employees under the age of 30. 

However, previously unreleased Treasury documents from the middle of this year show that only 5,278 workers were hired using the JobMaker hiring credit, accounting for only 1% of the initial budget projected. 

The hiring credit rewarded employers up to $200 per week for creating new jobs for people aged 16 to 29 on JobSeeker, Youth Allowance, or the Parenting Payment, and $100 per week for people aged 30 to 35.

IMF cuts growth forecast amid supply chain crisis

The International Monetary Fund (IMF) cuts its growth forecast for 2021 due to global workforce shortages affecting major supply chains unable to keep up with surging demand. 

The IMF has reduced its GDP forecast for 2021 by 0.1% as suppliers struggle to meet surging demand while battling labour shortages. Many countries, including Australia and the United States, are experiencing rising international shipping costs. 

Rishi Sunak, the British Minister of Finance, has called on the G7 countries to offer loans to struggling countries in the goal of alleviating production and distribution bottlenecks.

Dollar pulls back from one-year high  

The dollar slipped from a one-year high as longer-term Treasury yields fell after U.S. inflation data showed prices grew steadily last month, and Federal Reserve meeting minutes confirmed tapering will begin “soon.”

Americans quit their jobs at a record pace in August

 The Labor Department reported that job resignation increased to 4.3 million in August, the most since records began in December 2000, and up from 4 million in July. That equates to approximately 3% of the labour force. 

According to the study, hiring also slowed in August, with the number of open jobs falling to 10.4 million from a record high of 11.1 million the previous month.

China exports increased despite power crunch

China’s exports increased significantly in September, according to official figures, but analysts warned of a coming threat from the country’s power shortage, which has interrupted supply. 

The statistics come following a strong increase in trade in the world’s second-largest economy in August, implying that international demand for consumer goods increased as a domestic virus outbreak was brought under control. 

However, several manufacturers were forced to suspend operations last month due to power outages caused by emission reduction targets, rising coal prices, and supply shortages, increasing concerns about global supply chains.

India-China trade to soon touch $100b mark

Despite a chill in bilateral relations due to the ongoing military standoff between the two countries in eastern Ladakh, the India-China trade volume seems certain to break the record of USD 100 billion this year, with the total already reaching US$90 billion in the first nine months. 

According to official figures, China’s overall imports and exports increased 22.7 percent year on year to 28.33 trillion yuan (about US$4.38 trillion) in the first three quarters of 2021.

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