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Welcome to the December RDAMIW eNews - well, what a year.
In January 2020, I think we all had plans and aspirations which were part of new year’s resolutions and a focus toward business and organisational opportunities, then along came a little thing called COVID-19. The impact of COVID-19 has had, and continues to have on all of us, and how we go about our daily lives and operations is profound. The impact of this pandemic, both in health and economic terms on the world and domestically, is a first for most of us and it has been somewhat horrifying and confronting to see the impact on those overseas and within our own country who have directly suffered. Even in a region like ours, where we had very few cases, we have had a major impact on the economics and jobs of the region.
Data from REMPLAN outlines the month-by-month impact analysis gleaned from business surveys in the region. The data showed that prior to COVID-19, jobs in the MIW region were at 85,165 – at the peak of COVID-19 isolation procedures, this figure dropped by an estimated 2900-3000 less employed people in the region. This drop in employment was lessened by the uptake of Job Seeker and Job Keeper funding, where it was estimated that close to 4000 business in the MIW region availed themselves of Job Keeper support. Even through to October 2020, employment numbers still indicate over 1500 less people employed per month prior to pre COVID-19 numbers – indicating that the region and its businesses still have challenges ahead.
Economic output analysis over the same time period (gross revenue generated by businesses and organisations) highlights a drop of $178.692 million per month for the period March-June 2020. By September 2020, the region had shown signs of recovery and monthly outputs levels were at $3,403 billion, indicating an output drop of $96M per month from pre COVID-19 levels. The overall impact indicates that, for the period from March to October 2020, total lost output was just over $755 million to the regional economy.
This loss in business revenue had a flow-on effect on wages and salaries for the region, where it was estimated that almost $16 million per month in decreased salaries and wages from May-June 2020 was recorded. By September/October 2020, things had improved a little with monthly wages and salaries some $9.02 million down on pre COVID-19 levels. The overall impact indicates for the period from March to October 2020 that total lost wages and salaries was just over $72 million to the regional economy.
While it is understandable to focus on the negatives from COVID-19, and it is acknowledged that challenges still lay ahead, it has driven some aspects of regional and national economies that may support not only recovery but also a stronger regional and national economy in the long term. These positive changes include;
- A focus on local manufacturing and services - building domestic capacity to make and build things and offer services.
- Investment in health - at all levels of government, challenges toward health and aging population management were complex issues to manage within a tight set of budget allowances. COVID-19 has driven a renewed level of health investment, which may allow us to be better prepared for our aging population.
- New ways of offering education and the benefits of online skills development for those already at work or those without work - education and skills development has become more doable for a greater section of the population.
- We are now more connected than ever before - the use of internet of things, video conferencing and new ways to communicate were happening but COVID-19 has showcased how we can still stay connected remotely.
- Overall regional communities and people have shown through COVID-19 a heightened level of social values - families, friends, workmates and others have showcased a stronger level of empathy for others. A community that is more connected is often more robust to deal with challenges.
The take home message is that adversity brings with it opportunity, innovation and resilience. The MIW region is eager to transition from a challenging year to 2021 where, while there may still be some challenges, the region is also poised to spring board to new and emerging opportunities and is willing to work smart and hard and in collaboration with anyone who has interest in partnering to move forward on solutions.
Click here to read about the 2020 highlights for RDAMIW on our website.
On behalf of the RDAMIW Committee and Staff, we wish everyone a safe and joyous break over the Christmas and New Year period, and look forward to working with you all again in 2021.
Robert Cocco,
RDAMIW CEO
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