DAVID KOCH:
Treasurer Josh Frydenberg joins us now. Treasurer, New South Wales opening up today. How significant is this for the national economy?
JOSH FRYDENBERG:
Well, it's very significant. The New South Wales economy is ready for lift off and it will reignite the national economy. And New South Wales success will be Australia's success, Kochie. I mean, after more than 100 days of lockdown, this is the reward for millions of people across New South Wales who have got the jab in record numbers. So we know the economy has been hit by the Delta variant, but we also know from other experiences through this pandemic that the economy does bounce back once restrictions are eased, businesses reopen, the kids get back to school and of course, people get back to work, and that's what we're hoping for and that's what we expect.
DAVID KOCH:
Yeah, because of the property boom and rapidly rising superannuation, Australians have never been richer. The problem is you can't eat your house or your super. What about the job market? How will that rebound? Will everyone have work available?
JOSH FRYDENBERG:
Well, as you know, we've created more than a million jobs over the course of the last year, and at one point, Treasury thought the unemployment rate reach as high as 15 per cent, with more than 2 million Australians unemployed. Right now, the unemployment rates at 4.5 per cent, which is a twelve year low in programs like JobKeeper, were absolutely key to that success in the labour market. So what we've seen during these lockdowns is that people have lost hours. In some cases, they've gone down to 0 hours, and some people have left the work force, so it hasn't always been reflected in the headline unemployment rate. But as Chris Richardson and Deloitte say today, as the Reserve Bank of Australia has said, and as Treasury expect, we will see continued strength in our labour market, and those jobs come back as the restrictions are eased.
DAVID KOCH:
Because job vacancies are way higher than even before the pandemic started.
JOSH FRYDENBERG:
That's right.
DAVID KOCH:
And that lack of migration, it's really creating a squeeze. I talk to lots of businesses in hospitality and tourism, desperate for staff, but they just can't find any.
JOSH FRYDENBERG:
Well, that's absolutely right. The workforce shortages have been there during various stages of this pandemic. And of course, having closed international borders has been one of the reasons for that. But as the Prime Minister and the Premier have both indicated, we want to open those international borders sooner than later. And when we do so, it's not just Australians, who can move more freely, will be international students and also skilled workers. And I think the point of it today is that we need to learn to live with the virus. We can't eliminate it. The Delta genie is out of the bottle and the focus must be on reducing hospitalisations, reducing deaths. Cases are no longer the main indicator here. I mean, the UK is very instructive, Kochie, they've seen an 83 per cent decline in hospitalisations from the peak earlier this year. They're getting still more than 30,000 new cases a day. Yet they're living with the virus. And I spoke to someone in the UK just yesterday and they said, basically, life is normal, and I can see that's what the people of New South Wales want and hopefully Victoria will soon follow suit.
DAVID KOCH:
Okay, opening up international borders. Do you reckon you can get everything organised by November?
JOSH FRYDENBERG:
Well, it's very encouraging to hear Premier Perrottet talk about that home quarantine and fast tracking it for November, because that's going to be the key. If we can fast track and ensure its effective and successful home quarantine system, then the international borders can reopen. I know Prime Minister Morrison is very keen to see that happen. We need to re‑engage with the world. It was the right call to close those international borders early on and it's one of the reasons why Australia's had such a low death toll compared to the rest of the world. But at the same time, the vaccination rates are rising rapidly. You've got 95 per cent 1st dose vaccination in the ACT. You've got 90 per cent plus in New South Wales, you've got 85 per cent plus in Victoria. These are some of the highest first dose vaccination rates anywhere in the world. And it shows that Australians are getting on and getting the jab, and this is their reward.
DAVID KOCH:
Yep, we do pull together as a community. It's a great part about being in Australian. Treasurer, appreciate your time. Thank you.
JOSH FRYDENBERG:
My pleasure.