A joint study by the Universities of Newcastle and Griffith has found more than 100 Australian suburbs are now considered to be at high risk from COVID-19 related job loss.
Professor Bill Mitchell from the University of Newcastle and Professor Scott Baum from Griffith University have collaborated to update the Employment Vulnerability Index, which maps Australian suburbs that are susceptible to economic and social disadvantage due to COVID-19 job losses.
They include several suburbs in the Hunter and Central Coast like Blacksmiths, Belmont South, Maitland West, Summerland Point, Mannering Park, Lake Munmorah and Singleton.
These are areas where there is a high proportion of dual income households which have never before been considered to be at risk of economic or social disadvantage.
With many of these households carrying high mortgages and credit card debt, recent job losses due to COVID-19 is placing them at high risk of social and economic pain.
Professor Mitchell said across Australia, 108 locations were identified as areas of emerging disadvantage, adding to the list of 97 locations with existing disadvantage.
Those areas which are traditionally identified as being disadvantaged like Cessnock, Raymond Terrace, Jesmond and Windale are likely to be even further impacted COVID-19 by job losses.
"For disadvantaged suburbs in smaller non-metropolitan regions where the spectre of job loss is more widespread across entire towns or regions, any rise in employment disadvantage is likely to see more significant impacts," he said.
Professor Baum said the two groups, emerging and historically disadvantaged localities, raised different issues for policy makers.
"For the group we call 'existing disadvantage job loss suburbs', further labour market disadvantage will cement the social and economic malaise experienced by these communities and widen the gap with the rest of the nation," he said.
Professor Mitchell warned that withdrawing government support after the crisis is over may undo any positive outcomes.
"There is a real danger that the government will retract support mechanisms too soon. This is something we have seen before. Ultimately how these suburbs and localities fare will depend on the impact of the Federal Government's economic rescue package and the depth of the economic downturn. Outcomes may not be as bad as some have predicted," he said.
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| Professor Bill Mitchell, Director of the Centre of Full Employment and Equity at the University of Newcastle |
