Echoes of Great Depression as Australian jobless queue for help at welfare offices

Source:AFP Published: 2020/3/23 18:43:40

Jobless Australians flooded unemployment offices around the country on Monday as Prime Minister Scott Morrison warned the coronavirus pandemic would cause an economic crisis akin to the Great Depression.

Musicians with Opera Australia perform in Sydney on Thursday to protest their forced layoff without pay, and demand financial support to the performing arts sector devastated by the coronavirus. Photo: AFP

After a record 29 years of economic growth, Australia is poised to spiral into recession as the global coronavirus outbreak wreaks havoc on the country's economy despite an A$189 billion ($100 billion) government relief package.

In scenes not seen in Australia for decades, queues stretched around the block at unemployment offices around the country as the forced closure of pubs, casinos, churches and gyms began at midday on Monday.

An online portal for government services also crashed as job seekers rushed to register for income support payments, which have been temporarily doubled by A$550 a fortnight to help people cope with the coronavirus crisis.

With hundreds of thousands of jobs on the line, Morrison told his compatriots they faced an economic crisis "the likes of which we have not seen since the Great Depression," referring to the global financial meltdown in the late 1920s and 1930s.

"They are lining up at Centrelink offices as we speak - something unimaginable at this scale, only weeks ago," he told Parliament.

"They have lost their jobs, many, and we know many more will. This is the biggest economic shock our nation has faced in generations."

Services Australia, which operates the social welfares offices known as Centrelink, said it was "experiencing very high demand" and urged people not to visit unless there was a "critical need" to do so.

Ahead of closing nonessential services, Australia had already shut its borders to international arrivals, while some interstate borders have been effectively shuttered and all nonessential travel is banned.

Morrison has warned the measures would remain in place across the country for up to six months, with stricter rules looming in an effort to contain the spread of coronavirus.

He said the once-in-a-100- year event meant that 2020 would be "the toughest year of our lives."

Australia's benchmark ASX 200 has lost 38 percent on coronavirus fears since its peak in mid-February, falling about 8 percent on Monday to lows not seen since November 2012.

The nation has recorded more than 1,670 cases of COVID-19 and seven people have died from the disease.



Posted in: ASIA-PACIFIC,WORLD FOCUS

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