Daily BulletinDaily Bulletin

The Conversation

  • Written by Matthew Gray, Director, ANU Centre for Social Research and Methods, Australian National University

Australia Bureau of Statistics data has confirmed the massive economic hit from the COVID-19 pandemic, with total hours worked across the economy officially falling 9% between early March and early April 2020.

Read more: Were it not for JobKeeper, unemployment would be 11.7%, up from 5.2% in one month. Here's how the numbers pan out

Our analysis, using data from the quarterly ANUpoll, suggests the self-employed have been hit harder, with average weekly hours dropping by almost a third between February and April 2020. More than eight out of 10 self-employed Australians say their profits have taken a significant hit.

Decline in hours worked for the self employed

The ANUpoll is an important economic and social barometer in Australia because it is a longitudinal survey – polling the same group of people multiple times throughout the year. This enables a more accurate snapshot of how individuals are being affected.

The data we are releasing today was collected from 3,155 Australians between April 14 and April 27.

It shows the 32% drop in hours worked by the self-employed (from 35.2 to 23.8 hours) was about double that of all employees, whose hours declined by 16% (from 35.5 to 29.7 hours).

The following infographic illustrates the degree of decline for all the self-employed in the poll (about 240 people). The blue dots above the red line show those working more hours in April; those below the line show those working less. Note the number at or near zero.

Self-employed Australians' hours have fallen 32% since coronavirus hit – double the impact on all employees Comparing weekly hours worked by the self-employed in February to April 2020. ANU Centre for Social Research and Methods, Author provided

Almost a third said their business would be unviable if financial trends continued for two months. If trends persisted for six months, 40% doubted they could survive.

Read more: COVID crisis has produced many negatives but some positives too, including confidence in governments: ANU study

The impact on savings and wellbeing

The proportion of self-employed saying they were finding it difficult or very difficult to survive on their current income increased from 29% to 36%.

Self-employed Australians' hours have fallen 32% since coronavirus hit – double the impact on all employees Proportion of people finding it difficult or very difficult on their current income, by employment type. ANU Centre for Social Research and Methods

This contrasts with an aggregate improvement among employees, most likely due to higher payments for those on lower incomes, such as the A$750 given to social security recipients.

21% of self-employed respondents said they had accessed retirement savings or superannuation early, compared with 7% of employees.

Among those thinking their business was unviable, 69% reported feeling anxious and worried, compared with 59% of those thinking their business was viable. Life satisfaction was also lower (5.6 out 10 compared to 7.0).

What does this mean for the self-employed in 2020?

Current policies includes a large amount of targeted assistance for the self-employed. Without that assistance, the outcomes summarised above would be far worse.

Read more: What'll happen when the money's snatched back? Our looming coronavirus support cliff

As physical distancing restrictions are eased, it will be important to continue to monitor how the self-employed are faring to ensure the level of government support is sufficient and well-targeted.

Authors: Matthew Gray, Director, ANU Centre for Social Research and Methods, Australian National University

Read more https://theconversation.com/self-employed-australians-hours-have-fallen-32-since-coronavirus-hit-double-the-impact-on-all-employees-138718

A contentious NSW gas project is weeks away from approval. Here are 3 reasons it should be rejected

arrow_forward

Slow to adjust to the pandemic's 'new normal'? Don't worry, your brain's just learning new skills

arrow_forward

The Conversation
INTERWEBS DIGITAL AGENCY

Politics

Did BLM Really Change the US Police Work?

The Black Lives Matter (BLM) movement has proven that the power of the state rests in the hands of the people it governs. Following the death of 46-year-old black American George Floyd in a case of ...

a Guest Writer - avatar a Guest Writer

Scott Morrison: the right man at the right time

Australia is not at war with another nation or ideology in August 2020 but the nation is in conflict. There are serious threats from China and there are many challenges flowing from the pandemic tha...

Greg Rogers - avatar Greg Rogers

Prime Minister National Cabinet Statement

The National Cabinet met today to discuss Australia’s COVID-19 response, the Victoria outbreak, easing restrictions, helping Australians prepare to go back to work in a COVID-safe environment an...

Scott Morrison - avatar Scott Morrison

Business News

Why You May Need A Tower Scaffold Hire

When constructing a building, or even a multilevel structure, you must use a tower scaffold to get you into position. What is unique about this type of scaffolding is that you can build it highe...

News Company - avatar News Company

20 year old Aussie marketing genius helping billion dollar household brands

Australian digital marketing agency, Co Media, founded by 20 year old marketing genius Lucas Cook, is making its mark on the world stage by gaining a number of high profile clients and quickly b...

News Company - avatar News Company

5 Reasons to Choose Pipe Relining

There’s nothing like a damaged pipe to stress you out and keep you up throughout the night. Depending on the extent of the damage, a pipe repair can be a complicated and time-consuming process. ...

News Company - avatar News Company



News Company Media Core

Content & Technology Connecting Global Audiences

More Information - Less Opinion