Josh Frydenberg announces plan to create a million new jobs as post-pandemic growth boosts economic forecasts
Josh Frydenberg claims one million jobs will be created over the next four years as a result of the Morrison government's economic strategy.
The treasurer will release his mid-year budget on Thursday, which economists expect will see an improved budget position against the backdrop of a rapidly recovering economy.
Deloitte Access Economics expects deficits will have improved by $103 billion over the four-year budget estimates.
Treasurer Josh Frydenberg will hand down his mid-year budget review on Thursday.
This would see the 2021/22 budget deficit reduced to $91.1 billion from $106.6 billion forecast in the May budget, and to $61.8 billion in 2022/23 rather than $99.3 billion.
This could be Mr Frydenberg's last major economic showpiece should Prime Minister Scott Morrison head to the polls in March rather than May, and before the 2022/23 budget planned for March 29.
Mr Frydenberg says Treasury has estimated about one million jobs will be created over the next four years.
'Saving jobs and creating jobs is a top economic priority,' he says.
'It's a pathway to a stronger economy, an improved budget bottom line while being fundamental to a healthy and prosperous society."
Tax cuts and business investment incentives are helping to create a new wave of economic activity as the baton is passed to the private sector to create more jobs and secure the recovery, he says.
Forecasts in the mid-year economic and fiscal outlook are expected to see the unemployment rate cut to 4.5 per cent by the June quarter of next year compared to the estimate of five per cent in the May budget.
By the June quarter 2023 it is estimated to be 4.25 per cent rather than the 4.75 per cent predicted seven months ago.
If achieved, this would represent the first time since before the 2008-2009 Global Financial Crisis that Australia has sustained an unemployment rate of below five per cent, and only the second time since the early 1970s.
Labour force figures also due on Thursday are expected to see the jobless rate fall to five per cent for November, after the unexpected jump to 5.2 per cent in October due to the impact of the recent COVID-19 lockdowns in NSW, Victoria and the ACT.
