Reducing Australia’s unemployment rate from 10% to 4% is achievable within 12 months.
This is the basis of a new report produced by the University of Newcastle’s Centre of Full Employment and Equity (CofFEE).
With a net investment of $51.7 billion, CofFEE believe the Australian Government could reduce the unemployment rate by 6% and deliver an increase in GDP of $101 billion.
Through its report entitled Investing in a Job Guarantee for Australia, the group says the government could create 1.2 million jobs and address the looming social and economic crisis facing the nation.
CofFEE director and Job Guarantee co-founder Professor Bill Mitchell says a Job Guarantee will deliver “inclusive employment outcomes that sustain individuals, families, communities, and industries through the crisis without triggering inflation”.
“Our modelling indicates the provision of a guaranteed job at a socially-inclusive minimum wage will reduce the massive income losses arising from unemployment, as well as the damage to individuals and families arising from unemployment,” he said.
The Job Guarantee offers each full-time employee a minimum wage salary of $A753.80 per week with all benefits, including leave.
The proposed program is federally-funded but locally organised.
The full report is available at CofFEE’s website.