Recovery in employment during pandemic but warning of more job losses ahead

Close to half of Australians who lost their jobs during the pandemic have now regained employment, but the Federal Government has warned unemployment will rise again.

Treasurer Josh Frydenberg has released figures showing the country's effective unemployment rate has dropped from 14.9 per cent in April to 9.9 per cent.

From the 1.3 million Australians who lost their job during the height of the pandemic, now almost 700,000 people have regained work.

READ MORE: Victoria 'on track' to ease restrictions in mid-September, says CHO

The bulk of these jobs have been created in NSW, with 315,000 people finding employment.

This figure is in contrast to other states. In Victoria, just 149,000 people found work and there were even less in Queensland: 100,000.

While the Federal Government says the figures are cause for optimism, the strict lockdown in Victoria is causing companies to shed jobs.

Mr Frydenberg told Today the new figures showed that employment recovered when the virus was under control.

"We're seeing particularly strong jobs growth in NSW with 315,000 jobs growth in NSW with 315,000 jobs and in the last two months. We've seen 340,000 new jobs around the country," he said.

Mr Frydenberg said 58 per cent of new jobs in Australia have gone to women.

"It shows what the formula can do when you get the virus under control and you ease the restrictions, people get back to work."

READ MORE: Australia's coronavirus cases by numbers 

But he said Treasury analysis forecast 450,000 people would lose their jobs in Victoria in the coming months due to the Stage four lockdown in Melbourne.

"That's why it is vitally important we get the virus under control."

It will also mean more Australians will be dependent on the Federal Government's JobKeeper wages supplement scheme.

Cassandra Goldie, chief executive of the Australian Council of Social Service, told Today it was crucial Federal Government support for the jobless continued.

She said the increased JobSeeker unemployment payment and the JobKeeper wage subsidy were helping millions of people but they are set to be reduced from next month.

"People are able to feed themselves, fresh fruit and vegetables is the thing we're hearing from people, not worried about being evicted. If we see this drop in the rate in September, we're very worried we will see people not able to pay their rent any more, again going without.

"We want both of those to continue. JobSeeker needs to be permanently increased. We need to give people that confidence they're not going to face this kind of cut to their income with one job available for every 12 people out there looking."

Ms Goldie said many people are worried about having to live on reduced payments.

"We talk a lot about mental health, one of the most distressing things you can worry about is losing your home and not being able to feed yourself and your families."

For breaking news alerts and livestreams straight to your smartphone sign up to the 9News app and set notifications to on at the App Store or Google Play.

You can also get up-to-date information from the Federal Government's Coronavirus Australia app, available on the App Store, Google Play and the Government's WhatsApp channel