Up to one in five jobs disappear in lockdown as business urges quick reopening

Almost one in five jobs across parts of western Sydney has disappeared since lockdowns were put in place, with business leaders urging a rapid re-opening of the economy once 80 per cent of the adult population is vaccinated.

In a sign of the hit to households across the country caused by the string of lockdowns affecting 15 million Australians, the number of people on payrolls fell by 0.7 per cent in the fortnight to August 14.

Every region of NSW, including Wollongong, suffered a fall in the number of people on company payrolls through the first half of August.Credit:Wolter Peeters

The Australian Bureau of Statistics said NSW bore the brunt of the impact, with the number of people on payrolls falling by 1.2 per cent in the fortnight and by 5 per cent since the middle of July.

Every part of NSW has suffered a fall in the number of jobs on company payrolls since the start of lockdowns from mid-May.

The worst hit areas have been across Sydney’s southern and western suburbs. The largest drop has been in Fairfield with a 17.7 per cent fall, while there were other large drops in areas such as Canterbury (17 per cent), Bankstown (15.6 per cent), Auburn (14.8 per cent) and Hurstville (14.5 per cent).

In areas such as Blacktown, the CBD and Mt Druitt, about one in 10 jobs have gone.

Across the north shore, between 7.4 per cent (North Sydney) and 10.1 per cent (Pittwater) of jobs on business payrolls have been lost.

Payroll numbers across Victoria slipped by 0.6 per cent through the first two weeks of August to be 1.7 per cent since mid-July.

Despite Victoria’s lockdowns, by mid-August the impact on jobs was relatively mild. The biggest falls were in the Glen Eira council area (down by 3.1 per cent), central Melbourne (2.9 per cent) and Gippsland (2.8 per cent).

Some parts of Victoria have actually seen an increase in employment, such as the region around Sale (up 4 per cent) and Loddon Shire (up 1 per cent).

Across the rest of the country, payroll numbers dropped by 0.7 per cent in the ACT to be 1.3 per cent down since mid-July, they fell by 1 per cent in Queensland and by 0.5 per cent in Tasmania.

Economists believe the official jobs figures, due out next week, will show the loss of up to 300,000 positions across the country through August as lockdowns hit the employment market. They also expect a bounce back once lockdowns end.

The Business Council of Australia, in a report released on Friday, urged all levels of government to open up the economy as quickly and as safely as possible once 80 per cent of the eligible population is vaccinated.

Jennifer Westacott says Australia cannot remain isolated from the rest of the world.Credit:Alex Ellinghausen

Council chief executive Jennifer Westacott said the longer Australia remained shut-off from the rest of the world, the greater the chance the country would be isolated from the global recovery now under way.

“This isn’t just about the staggering economic cost of lockdowns, it’s about letting Australians see their loved ones again, meet up with friends and just get on with their lives,” she said.

“We have shown we can bounce back and if we plan now to safely reopen, we can minimise the economic and social damage and get ourselves back on the recovery path.”

The council said at 80 per cent, fully vaccinated Australians should be free from domestic restrictions with hospitality, retail and manufacturing at 100 per cent of capacity.

It conceded some restrictions, such as masks in high-risk environments, may need to be maintained.

The council also believes governments have to start planning now for a rollout of booster vaccinations, targeting vulnerable people and frontline workers with the first injections to start between March and May.

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Shane Wright â€" Shane is a senior economics correspondent for The Age and The Sydney Morning Herald.Connect via Twitter or email.

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