Productivity Commission: JobKeeper stifles economic recovery

Productivity Commission chairman Michael Brennan has called for the JobKeeper wage subsidy scheme to be phased out, arguing that it will stymie the recovery by encouraging workers to remain with their existing employer:

“[JobKeeper] also creates a rigidity by tying existing workers to existing firms, and a time inevitably comes when that holds back the process of recovery”…

“Once a reallocation process is underway, we want to make sure that labour and capital [and land use] are gravitating towards sectors and firms where they will be more productively employed.”

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