Melbourne's insurance businesses to be hard hit by lockdown

Melbourne's insurance businesses to be hard hit by lockdown | Insurance Business Australia

Melbourne's insurance businesses to be hard hit by lockdown

Melbourne’s strict lockdown has been extended, threatening insurance businesses as 79,000 jobs are set to be lost in the worst economic, social, and mental health disaster for the city since the First World War.

The PwC model from the mayor’s office revealed that Melbourne’s CBD faces a $110 billion wipe-out over the next five years from its strict lockdown.

“With thousands of people working from home, our shopping malls, hotels, and restaurants have been almost deserted,” said Melbourne Mayor Sally Capp.

“Office workers are a big part of the community in neighbourhoods like Docklands, which is normally home to 72,000 jobs,” she continued – noting that the office vacancy rate is up to 5.8%, up from a historically low 3.2% in February.

Victoria lost 128,000 jobs in April, which is three times higher than the 38,000 job losses in March 1991 – the largest single-month job losses in the state in the 1990s recession. Overall, the Federal Treasury expects around 400,000 to 700,000 job losses across the state.

Paul Zahra, the chief executive officer of the Australian Retailers Association, commented: “Restrictions have hit CBD retailers like a sledgehammer, and they have felt the pressure more than other locations under the weight of lost foot-traffic and elevated rents.”