The latest RBA Bulletin contains an interesting report on COVID-19’s impact on Australia’s labour market, in which the RBA warns that unemployment may take a decade to fully recover:
The COVID-19 pandemic has led to a rapid deterioration in labour market outcomes, some of which may be long-lasting. This article examines the long-lived effects of previous downturns on unemployment in Australia, including by assessing how regional labour market outcomes varied during and after the GFC and early 1990s recession. We find that recessions have enduring effects on unemployment rates: regions that experienced larger-than-average downturns had significantly higher unemployment rates for around a decade afterwards.
COVID-19 and the Labour Market
