Hospitality and the arts, industries that were hit the hardest by the coronavirus pandemic might not fully recover for five or six years according to Deloitte Access Economics’ latest employment forecast.
Shutdowns and restrictions that were implemented earlier this year amid the outbreak of COVID-19 has heavily impacted the hospitality and art sectors.
Australian Bureau of Statistics data shows that more than a quarter of hospitality jobs have been lost since mid-March and about one in five arts sector positions.
Deloitte partner David Rumbens said that while it might take until 2026 for these sectors to bounce back, media, telecommunications, education and property services are predicted to go back to ‘normal’ by the end of 2021.
Shadow treasurer, Jim Chalmers said the analysis highlighted how Australia’s recovery would largely depend on how the government stimulus was targeted.
“These sobering assessments should pour cold water on the prime minister’s belief that the Australian economy will miraculously ‘snap back’ by the last Monday in September this year,” he said.
The report also highlights data showing the total hours spent in workplaces is less than half of what would be expected without the coronavirus restrictions.
The emptying out of the nation’s CBDs has a flow-on effect for other businesses like cafes and shops.
Meanwhile retail trading dropped by more than 17 per cent in April, preliminary figures released by the ABS on Wednesday show.