EY praises economy as JobSeeker and JobKeeper supplements wrap up

As the JobSeeker payment changes and the JobKeeper end date approaches, EY believes that the Australian economy is in a good spot.

Gretchen Kennedy

Gretchen grew up in a small Connecticut town where she learned to read The Wall Street Journal as part of the grade six enrichment program. She moved to Australia in 2002, earned a Master of Arts (Professional Writing) and went on to spend eight years writing on Wall Street. In June 2018, Gretchen returned to Australia and has since developed a keen interest in all things ASX. In December 2020, she started writing for the Motley Fool. Gretchen's usually writing something, reading a book or chasing her dogs around.

Published March 15, 2021 11:51 am AEDT

Many Australians are watching with interest as changes to the JobKeeper and JobSeeker payments take effect this month.

While the implications of these changes for unemployment and the economy are yet to materialise, EY believes that Australia is on the right path.

Will the changes impact the Australian economy?

The Australian Financial Review (AFR) has today reported that EY categorises Australia with New Zealand, Denmark and South Korea with regard to our nation's management of the coronavirus pandemic.

However, for Australia to continue its march forward, one chief economist believes that businesses need to exhibit strong future growth prospects.

Jo Masters noted in the AFR that, as Australia steers its way out of the pandemic, the next twelve months require a strong corporate sector.

The sector is also predicted to play a key role in boosting investing and driving economic growth once the JobKeeper payments end and JobSeeker is reduced.

EY says Australia is in "great shape"

EY continued that Australia is faring "above average" when compared to other similar economies. It believes that following coronavirus, Australia will be in one of the best positions to rebound from the economic and health blows dealt by the pandemic. As quoted by AFR, the report stated, "Australia is in great shape, one of the top performers when viewed against many comparable developed economies".

With JobSeeker changing and JobKeeper coming to a close, EY remains confident the country is well positioned to grow. However, businesses will have to help lead the way.

Foolish takeaway

In addition to changes to the JobSeeker and JobKeeper programs, there's an economic support payment due to come out this month. This will be for eligible citizens who receive payments such as the aged pension, disability support or family tax benefit. It will also be implemented alongside the government's half-price airfare scheme.

And, if EY's report is anything to go by, Australians can be reassured regarding the current picture of our economy.

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