COVID-19 Economic Recovery

The Hon. D.W. RIDGWAY (15:25): My question is to the Treasurer. Can the Treasurer please inform the chamber of any information he has about South Australia's economic recovery as we emerge from the COVID-19 pandemic?

The Hon. R.I. LUCAS (Treasurer) (15:26): I am pleased that the Australian Bureau of Statistics have released their latest labour force Single Touch Payroll figures as of this morning, which indeed show very positive, optimistic signs in terms of the extent of the economic recovery in South Australia. As members will be aware, the Single Touch Payroll figures are much more contemporaneous than the monthly labour force figures. They are for the most recent fortnight, ending 18 January of this year.

What they show is that since the low point of the global pandemic, which was in the middle of April, there has been a 7.2 per cent increase in employee jobs in South Australia compared with the national figure of 4.6 per cent, so a significantly increased growth in terms of jobs in South Australia since the low point in the middle of April. It is the second highest growth rate of all the states and territories when compared with the low point in the middle of April, when we were at the worst in terms of the jobs impact of COVID-19.

Similarly, when you look at employee wages, because that is, from some stakeholders' viewpoint, a better indication of the health of the economic recovery, what that shows is that employee wages in South Australia have grown by 3.4 per cent since the worst period in the middle of April. The national figure is 0.8 per cent. The growth in employee wages in South Australia is four times stronger than the growth in employee wages nationally. I think that's a very optimistic sign for everyone who does want to help instil confidence in the South Australian economy and to help encourage businesses to continue to grow, to invest and to employ more South Australians as we seek to emerge from COVID-19.

These figures released today come hot on the heels of a number of other independent assessments that have been done. Deloitte Access Economics in the last month has summarised economic recovery in South Australia by the following phrase, 'South Australia has weathered the COVID storm remarkably well to date.' The report states that South Australia's recovery theme has been 'jobs, jobs and more jobs', with the state's unemployment rate lower than it was when COVID-19 hit.

We are pleased to be able to report, from South Australia's viewpoint, that there are now 10,000 more people in full-time employment in South Australia than at the same time last year. So from December 2020 compared with December 2019, if we compare post-COVID with pre-COVID, there are 10,000 more people in full-time employment in South Australia. The previous month's figures pleasingly showed South Australia's unemployment rate as the lowest or the best in the nation. The most recent monthly figure shows us having the second lowest, the second best, unemployment rate in the nation.

Whilst other reports, such as the NAB Monthly Business Survey and the CommSec State of the States reports, equally indicate positive conditions in terms of business conditions in the state and business confidence improving, it's important to note that there is still much, much more that needs to be done. It is important to note that there are some industry sectors that are still very significantly impacted by COVID-19, in particular those that rely on international travel to any extent at all. Tourism, travel, international education and the aviation industry are clearly significantly impacted on an ongoing basis.

Overall, I think it's important, as I said in the budget speech, that the key foci, if I can put it that way, of the budget, and we hope this year, are two things: one is jobs, jobs and more jobs, and the second one is encouraging confidence in the South Australian economy. With confidence, businesses will be prepared to invest and to employ more South Australians. With confidence, South Australian households will be more prepared to resume their normal spending patterns, rather than being overly concerned about the state's economic future and their own personal circumstances in terms of economic recovery.

So confidence is important. We encourage everybody who comments on the state's economic recovery to do so based on facts, rather than on base political motives, perhaps, in trying to drive the economic recovery downwards.