WA Impact Statement COVID-19 - pandemic - Government of ...

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WA Impact Statement COVID-19 - pandemic - Government of ...
WA
Impact
Statement
COVID-19
pandemic

July 2021
WA Impact Statement COVID-19 - pandemic - Government of ...
Acknowledgment of Country:
The Government of Western Australia acknowledges the traditional custodians
throughout Western Australia and their continuing connection to the land, waters
and community. We pay our respects to all members of Aboriginal communities and
their cultures; and to Elders past, present and emerging.
© State of Western Australia 2021
There is no objection to this plan being copied in whole or part provided there is due
acknowledgment of any material quoted or reproduced.

Published by the Department of the Premier and Cabinet, Western Australia,
July 2021.

This report is available at WA.gov.au
WA Impact Statement COVID-19 - pandemic - Government of ...
Contents

Impact of the COVID-19 pandemic               1

At a glance                                   2

Known impacts: Health                         7

Known impacts: Economic and infrastructure   12

Known impacts: Social                        16

Known impacts: Industry                      19

Known impacts: Regions                       24
WA Impact Statement COVID-19 - pandemic - Government of ...
Impact of the COVID-19 pandemic
              ---
                                               -.
This statement provides an overview of       remains one of the strongest in
the impact of the COVID-19 pandemic          the nation.
on Western Australia. It updates the
                                             The availability of safe and effective
WA Impact Statement released by the
                                             vaccines against COVID-19 offers the
Government in December 2020.
                                             community the best possible opportunity
Compared to other parts of the               to manage the health risks of COVID-19
world, there has been a low number           into the future. WA is making good
of COVID-19 cases in the state. The          progress in administering vaccines.
coordinated response, border controls,
                                             Along with managing recovery from
and the community’s adherence to
                                             the COVID-19 pandemic, the WA
the guidelines and restrictions have
                                             Government continues to support
protected everyone.
                                             residents and businesses impacted by
During February, April and June 2021,        Cyclone Seroja, the Wooroloo bushfires,
brief lockdowns were put in place            and flooding in the Mid-West and
to prevent community transmission            Kimberley earlier this year.
of the virus.
                                             This statement summarises the current
Success in managing the spread of            and emerging impacts of the pandemic,
COVID-19 continues to bolster the            taking into consideration ongoing
state's reputation as a safe place           measures implemented to prevent the
to live, work and do business. The           spread of the virus and support both
economy continues to grow and                economic and community recovery.
                                             This includes the continued rollout of
                                             the $5.8 billion WA Recovery Plan.

                                                    The economy continues
                                                    to grow and remains
                                                    one of the strongest
                                                    in the nation.

                                         1
WA Impact Statement COVID-19 - pandemic - Government of ...
At a glance

Health
The health system maintains capacity to respond to surges and is focused on the
rollout of the vaccine program.

• At 30 June 2021, there have been             • Emergency department attendance
  1,028 total confirmed cases of                 numbers have increased over the 15
  COVID-19 in WA including nine                  months between April 2020 and June
  deaths.                                        2021. Attendances in June 2021 were
                                                 13.9% (11,573) higher than the same
• At 30 June 2021, more than 1,350,057
                                                 period in 2020.
  COVID-19 tests have been performed,
  and the state’s testing capacity             • Use of telehealth services has
  was demonstrated with 21,443 tests             increased significantly with a total
  conducted in a 24-hour period during           of 997,557 appointments delivered
  the June 2021 lockdown.                        between March 2020 and June 2021.
• At 30 June 2021, 726,802 COVID-19            • The mental health impacts of the
  vaccine doses have been administered           pandemic continues to be a key
  in WA (Australian Government and WA            issue, particularly for young people,
  Health programs), inclusive of 144,955         and are expected to be further realised
  people who have received both doses.           in the months and years to come.

                                                 21,443 tests were
                                                 conducted in a 24-hour
                                                 period during the brief
                                                 June 2021 lockdown.

                                           2
WA Impact Statement COVID-19 - pandemic - Government of ...
Both business and consumer
                                              confidence in Western Australia
                                              remain above pre-COVID-19
                                              pandemic levels.

Economic and infrastructure
The WA economy continues to demonstrate its strength.

• The domestic economy (measured             • More hiring is expected in the near
  by State Final Demand) increased             term, with job vacancies in May 2021
  by 3% in the March 2021 quarter              close to their highest level in around
  and by 3.8% in year-ended terms,             nine years and almost 65% above
  reaching its highest quarterly level         pre-COVID-19 pandemic levels.
  in five years. State Final Demand
                                             • WA has more than fully recovered the
  growth in the March 2021 quarter
                                               initial jobs lost due to the COVID-19
  was underpinned by 11.5% growth in
                                               pandemic while the unemployment
  business investment, the strongest
                                               rate was just 4.7% in May, the lowest
  rise in nine years.
                                               since December 2013 and the lowest
• All key components of the domestic           of all states.
  economy are now back above pre-
                                             • Support from the WA and Australian
  COVID-19 pandemic levels, aside
                                               Governments has also led to a
  from household consumption (which
                                               significant increase in activity in the
  is being impacted by international
                                               construction industry, with a large
  travel restrictions).
                                               pipeline of work creating jobs across
• Both business and consumer                   the state.
  confidence in WA remain above
  pre-COVID-19 pandemic levels.

                                         3
WA Impact Statement COVID-19 - pandemic - Government of ...
Arts, culture and sports
                                                  facilities remain open
                                                  and provide opportunities
                                                  for recreation, social
                                                  connection and wellbeing.

Social
While economic recovery continues to be above expectations, pressure remains on
key social areas.

• Homelessness support referrals                  (family) assault offences between
  have been tracking at or below 2019             March 2020 and May 2021 than in the
  levels since March 2020. May 2021               same period in 2019-20.
  referrals were the highest reported
                                                • Demand for the Emergency Relief
  since early 2020, but decreased in
                                                  and Food Access Service has been
  June 2021.
                                                  increasing since November 2020,
• Housing availability is a concern, with         reaching a peak in March 2021, with
  the stock of rental properties at very          slight declines in May and June 2021
  low levels statewide. Median rental
                                                • Arts, culture and sports facilities
  prices in Perth have risen over the
                                                  remain open and provide
  past year while the vacancy rate, at
                                                  opportunities for recreation, social
  1.2% in June 2021, remains well below
                                                  connection and wellbeing. However in
  the equilibrium rate of 3%.
                                                  the event of a lockdown, restrictions
• There has been an increase in                   can cause disruption to the industry,
  reported incidents of family and                specifically planning related to events
  domestic violence, with 11.3% more              and travel.

                                            4
WA Impact Statement COVID-19 - pandemic - Government of ...
Industry
The ongoing impact and speed of recovery continues to vary across industries, with
the remaining restrictions, levels of government support and external environment
having different effects on different industries.

• Growth in retail trade has reached            • Ongoing travel restrictions continue
  historic highs, increasing by 15.4% in          to constrain WA’s trade in services
  annual average terms to April 2021.             (including tourism and international
  Spending in April 2021 was 16% above            education), as well as larger
  pre-COVID-19 pandemic levels.                   entertainment events. Services
                                                  exports have declined by a record
• Underpinned by support from the
                                                  42.6% in the year to March 2021.
  WA and Australian Governments,
                                                  However, the redirection of spending
  residential construction continues to
                                                  to the local tourism market has
  show exceptional strength. Building
                                                  provided partial compensation for
  approvals are up a record 81%
                                                  the tourism sector.
  annually to May 2021, while finance
  for new dwelling construction was up          • Skills shortages have emerged as
  145.8% – also a record.                         a pressing issue across a range
                                                  of industries, exacerbated by the
• The global economic recovery has led
                                                  restricted availability of labour from
  to significant increases in commodity
                                                  interstate and overseas. There are
  prices and record sales values for
                                                  reports of skills shortages in industries
  WA’s mining industry. Reflecting this,
                                                  that are central to the state’s
  the value of merchandise exports
                                                  economic recovery, including mining,
  reached a record high of $213.8 billion
                                                  construction and transport, as well as
  in the year to May 2021.
                                                  in the health and hospitality sectors.

      Growth in retail
      trade has reached
      historic highs.

                                            5
WA Impact Statement COVID-19 - pandemic - Government of ...
Regional food and agriculture
                                                businesses have seen
                                                considerable investment
                                                over the last 12 months.

Regions
WA’s regions are recovering strongly and, while each region is recovering differently
and challenges remain, opportunities are emerging with more than 15,000 jobs
created over the last 12 months and job advertisements continuing to increase.

• Economic conditions are improving            • The ‘Wander out Yonder’ campaign
  across the board, with a steady                has been very successful in
  pipeline of WA Recovery Plan                   encouraging Western Australians
  projects flowing through to regions            to travel and holiday in the regions.
  and ensuring local opportunities are
                                               • Regional unemployment fell to 4.6% in
  maximised.
                                                 May. JobActive numbers indicate that
• The number of Jobactive cases in the           shifts in employment are resulting in
  regions rose from 16,464 in the week           an increased number of over 50 year
  ending 23 February 2020 to 27,903              olds and part-time casual workers
  at the end of June 2020, but have              (who are disproportionately female)
  since eased to 20,882 at the end of            becoming unemployed.
  June 2021.
                                               • Demand for regional housing is driving
• Regional food and agriculture                  new building approvals to record
  businesses have seen considerable              levels, with many regions experiencing
  investment over the last 12 months.            increasing rental costs and reduced
  While the sector has had to manage             availability.
  workforce shortages and supply
  chain vulnerabilities it has continued
  to grow, adding $8.7 billion in export
  income in 2020.

                                           6
WA Impact Statement COVID-19 - pandemic - Government of ...
Known impacts:
Health
           ...
COVID-19 cases
At 30 June 2021, there have been                 More than 1,350,057 COVID-19 tests
1,028 total confirmed cases of                   have been performed. A plan is in place
COVID-19 in WA, including nine deaths.           for the rapid surge of testing across
                                                 public and private sector pathology
                                                 providers, including specimen collection
                                                 and laboratory services. This testing
                                                 capacity has been verified with 21,443
                                                 tests conducted in a 24-hour period
                                                 during the June 2021 short four-day
                                                 lockdown.

                                                 Vaccination program
                                                 At 30 June 2021, a total of 726,802
                                                 COVID-19 vaccine doses have been
                                                 administered in WA, following the
                                                 commencement of the vaccination
                                                 program on 22 February 2021.

  Cases
                                COVID-19 cases
    500
  Cases

    500
    450

    450
    400

    400
    350

    350
    300

    300
    250

    250
    200

    200
    150

    150
    100

    100
     50

     50
      0

      0
                 I    I   ■   I     ■     I                   I   I   -I I -    ■

                                                Month
                               Source: Department of Health

                                                Month

                                            7
COVID·
                                                                           Vaccination Cl

As of 30 June 2021, 144,955 Western                                  Vaccine hesitancy is a key challenge
Australians have received both                                       for the success of the vaccine rollout
doses of either the AstraZeneca or                                   across the state.
Pfizer vaccine.
                                                                     Recent directions under the Public
In May 2021, vaccinations were made                                  Health Act 2016 have mandated that,
available to the general population                                  from 10 May 2021, anyone working in
in health and other facilities in                                    WA’s hotel quarantine system must be
metropolitan and regional WA for those                               vaccinated against COVID-19.
eligible in Phase 1a, 1b, people over
                                                                     In July 2021, expansions to WA's
the age of 50, and people under the
                                                                     vaccination program were announced to
age of 50 with a medical condition or
                                                                     allow more eligible Western Australians
disability. From 8 June 2021, all Western
                                                                     to get vaccinated at new clinics from
Australians aged 30 years and over
                                                                     September in Perth CBD, Midland and
could register to receive a vaccination.
                                                                     regional WA.

 800,000
800,000
                                    People in WA vaccinated
 700,000
700,000

 600,000
600,000

 500,000
500,000

 400,000
400,000

 300,000
300,000

 200,000
200,000

 100,000
100,000

     00             ......... ,,,,11111111111111111111111111111111

                         Cumulative first doses                         Cumulative second doses
                                 Cumula�ve
                                  Cumula�veFirst
                                             FirstDoses
                                                   Doses             Cumula�ve
                                                                      Cumula�veSecond
                                                                                SecondDoses
                                                                                       Doses
                                             Source: Department of Health

                                                               8
Health system readiness
Ensuring the health system’s capacity           are approximately 640 contact tracers
to respond to widespread community              available on a surge register.
transmission remains a key priority,
with an expanded vaccination program            Waitlist for elective surgery
and overarching integrated outbreak
plan as well as both service and                Following restrictions to elective surgery
community specific outbreak plans               imposed during lockdowns in early
in place.                                       February and late April 2021, elective
                                                surgery returned to full capacity at
COVID-19 clinics continue to operate            1 May 2021. From 2 June 2021 some
at Royal Perth Hospital, Fiona Stanley          non-urgent elective surgeries have been
Hospital, Sir Charles Gairdner Hospital         rescheduled to help ease pressure on
and in Bunbury, Midland, Rockingham,            the hospital system. During the four-day
Armadale, Joondalup, Kununurra and              lockdown in June 2021 there was a
Broome.                                         pause on all non-urgent procedures.

There remains a good supply of
personal protective equipment (PPE),            Emergency department
with a dedicated procurement team               attendances
maintaining targets for PPE, medical
                                                Attendance numbers have increased
equipment and health care supplies
                                                over the last 15 months with 28,194
from existing and new suppliers.
                                                more attendances between April 2020
At 19 May 2021, the Department of               and June 2021. Attendances in June
Health employed 50 full-time equivalent         2021 were 13.9% (11,573) higher than
(FTE) contact tracers. In addition, there       the same period in 2020.

                                            9
Innovation and digital health
The COVID-19 pandemic has                         appointments which saw an increase
highlighted the importance of access to           of 66% from May 2021 compared
appropriate digital services, supports            to October 2019. In April 2021, 23%
and infrastructure in the delivery of             of all outpatient appointments were
healthcare. This is evidenced by a rapid          conducted virtually (telehealth and
escalation in telehealth and telephone            telephone).

                   Telehealth/telephone attended appointments
 90,000

 80,000

 70,000

 60,000

 50,000

 40,000

 30,000

 20,000
            Jan-19
            Feb-19
            Mar-19
            Apr-19
           May-19
            Jun-19
             Jul-19
           Aug-19
           Sep-19
            Oct-19
           Nov-19
           Dec-19
           Jan-20
           Feb-20
           Mar-20
           Apr-20
           May-20
           Jun-20
            Jul-20
           Aug-20
           Sep-20
           Oct-20
           Nov-20
           Dec-20
           Jan-21
            Feb-21
            Mar-21
            Apr-21
           May-21
                                 Source: Department of Health

Mental health
The mental health impacts of the                  have returned to pre-pandemic
pandemic continue to be realised                  levels. In August 2020, estimated
across WA, with contributing factors              methamphetamine consumption
including the separation of families both         decreased to a four-year low, however
interstate and overseas, working from             signs that consumption is returning
home, and pressures relating to rental            to pre-pandemic levels have started
and job security.                                 to emerge.

Between July 2020 and April 2021,                 A range of measures has been put in
there were 54,909 mental health related           place to support those in need including
emergency department attendances                  the expansion of mental health, alcohol
across WA, an increase of 4.0%                    and other drug services across the
compared to the same period in                    state; provision of community-based
2019-20.                                          accommodation services; and funding
                                                  for existing services to adjust to the
While some alcohol-related harm
                                                  impacts of the pandemic.
indicators diminished during the
early stages of the pandemic, most

                                             10
At-risk people and communities
Older people and residents of residential          Partnerships between key agencies
aged care facilities are among the                 have been developed to enable
most vulnerable to COVID-19. To                    accurate and credible information
support preparedness, WA Health has                about the vaccine program to be
undertaken proactive engagement                    provided to Aboriginal communities.
including co-developing and testing
                                                   Vaccination rollout for people with
outbreak plans and providing free
                                                   disability has been challenging due to
personal protective equipment to all
                                                   restrictions on the administration of
residential aged care facilities state-
                                                   vaccinations to certain age cohorts,
wide. In addition, it is now delivering
                                                   issues relating to consent and
the COVID-19 vaccination program to
                                                   eligibility of family members for priority
residential aged care facilities staff.
                                                   vaccinations. The Australian and WA
People experiencing homelessness are               Departments of Health have made
also highly vulnerable to COVID-19. The            health messaging available in various
Discharge Facilitation Fund has been               formats to assist people with disability
established to support safe discharge              and disability service providers.
by providing flexible funding for short
                                                   COVID-19 also poses additional
term accommodation, taxis, transport,
                                                   challenges for culturally and
travel home to country and mobile
                                                   linguistically diverse people, especially
phone credit. Support for homeless
                                                   those with lower levels of English and
people is also provided by Homeless
                                                   health literacy such as refugees and
Healthcare which provides mobile street
                                                   humanitarian entrants. To address this,
and fixed site clinics in inner-city Perth.
                                                   the health system continues to work
                                                   with agencies that engage directly with
Aboriginal people are at greater risk
                                                   multicultural communities to provide
during a pandemic. This risk has been
                                                   clear and easily understood health
reflected in clinical guidelines and
                                                   messaging in different languages.
planning related to COVID-19. Supply
and logistics for delivering the vaccine           Regional response plans have been
to remote communities across WA                    revised and continue to be tested as
presents several challenges. Substantial           part of WA Country Health Service’s
planning and collaboration between                 assurance program. Regional ports
service providers to support vaccine               continue to be involved in activating
implementation strategies are ongoing.             and testing outbreak plans.

                                              11
Known impacts:
 Economic and infrastructure
---
 Economic update                                  Skills
 Following a severe 6% decline in                 Job vacancies have risen to be almost
 the June 2020 quarter, the state’s               65% above pre-pandemic levels in May
 domestic economy has grown for three             2021. While this aligns with positive
 consecutive quarters and is now at its           momentum across the economy,
 highest quarterly level in five years (at        it may also partially be attributed
 March 2021). The 2020-21 Pre-election            to businesses having trouble filling
 Financial Projections Statement projects         advertised positions, with widespread
 2.25% State Final Demand growth in               anecdotal reports of skills shortages
 2020-21 and 2% growth in the total               across a range of industries.
 economy (measured by Gross State
                                                  The WA Government’s Skills Summit
 Product). WA Government revenue
                                                  plans to hear from business leaders
 has continued to be more resilient
                                                  on what more can be done to address
 than previously estimated, aided by
                                                  skills needs to ensure the workforce
 a stronger than expected economic
                                                  continues to be globally competitive
 recovery and commodity prices
                                                  in the coming years.
 (especially for iron ore).

 Job vacancies have
 risen to be almost 65%
 above pre-pandemic
 levels in May 2021.

                                             12
Jobs
      Underpinned by stronger economic                              unemployment rate has fallen to 4.7% in
      conditions, WA has now more than                              May 2021. Job advertisements were near
      fully recovered the initial jobs lost                         a nine year high in May 2021, indicating
      due to the pandemic while the state’s                         that hiring is likely to continue.

                                                                                    Employment
                                                             Persons ('000)

                                                             1,400

                                                              1,375

                                                              1,350

                                                              1,325

                                                             1,300

                                                              1,275

                                                              1,250
                                                                  May-17       May-18        May-19        May-20       May-21

                                                                              Source: Australian Bureau of Statistics

                NAB business confidence                                Business confidence
                Monthly, seasonally adjusted data
                                                                       Business confidence in WA,
60      Index                                 Western Australia        measured by the NAB Business
                                              Australia
                                                                       Survey, has been positive for
40
                                                                       12 consecutive months to May 2021
 20                                                                    and remains well above
                                                                       pre-pandemic levels (despite falling
  0
                                                                       slightly in the month).
                                                                       In trend terms, confidence was the
-20
                                                                       highest among the states/territories.
-40
                                                                       A July 2021 survey conducted by the
-60                                                                    Chamber of Commerce and Industry
                                                                       WA found that close to three in five
-80                                                                    businesses across the nation are
   May-15              May-17            May-19            May-21
                                                                       expressing an increased interest in
                     Source: National Australia Bank
                                                                       shifting their investment to WA.

                                                              13
Consumer sentiment
The Westpac-Melbourne Institute
Survey shows consumer sentiment
moderated during the June quarter
2021 but remained above pre-pandemic
levels. The quarterly fall likely reflected
the impact of the lockdowns throughout
the nation.

Index
130
          WA consumer sentiment
Index
130
120

120
110

110
100

100
 90

90
80

80
70

70
60
 Jun-18          Jun-19          Jun-20         Jun-21
60
 Jun-18   Source: Westpac/Melbourne
                  Jun-19            Institute
                                 Jun-20         Jun-21

Consumer spending
Real retail trade grew by 8.8% in annual                      (up $836 million), and higher tax
average terms to the March 2021                               collections (up $576 million) primarily
quarter, the highest growth since 2012.                       reflecting the strength of the residential
More recent data in nominal terms                             property market.
shows retail spending fell by 1.5% in
April 2021 (likely due to the three-day                       Residential construction and
lockdown in late April) but remains                           housing market
over 16% above pre-pandemic levels                            Activity in the residential construction
with annual growth strengthening to                           sector has picked up strongly following
a record.                                                     the announcement of construction
                                                              grants in early June 2020. Residential
WA Government revenue                                         building approvals reached a total of
General government revenue for the                            24,982 in the 11 months to May 2021
first nine months of 2020-21 was                              compared to 13,183 over the same
$3,678 million higher than the same                           period a year earlier, representing
period last year. This growth is due                          an increase of 89.5%. Demand in
mostly to higher royalty income (up                           the established housing market has
$2,103 million) as a result of a higher                       also been robust with total sales for
benchmark iron ore price, the timing of                       detached homes and units increasing by
dividends from public corporations                            an annual average of 54% in June 2021.

                                                         14
Sales of motor vehicles
Sales of new vehicles in May 2021 were          recovery has not been as strong in the
at their highest since June 2016 (almost        Perth CBD as the rest of the state. While
five years), with annual growth reaching        spending in the Perth CBD is above pre-
23.3% - the highest of all states/              pandemic levels, it has not grown
territories and well above national             as much relative to the whole of WA.
growth of 8.4%.
                                                The WA Government has introduced
                                                initiatives that directly assist those
Perth CBD
                                                most affected by the pandemic such
WA’s domestic economy has bounced               as the “Stay, Play and Save” campaign
back strongly, however indicators such          which provides discounts to people
as card spending, foot traffic at retail        staying in selected hotels on a two-
outlets, number of active merchants and         night mid-week stay.
hotel occupancy have all suggested that

                                           15
Known impacts:
Social
       .                 -
Family and domestic violence
The WA Police Force reported increases                         level, they were higher in May 2021
in family assault offences of around                           compared to the same period a year
11.3% between March 2020 and May                               ago. There is some concern that lower
2021 compared to the same period 12                            government support payments and
months earlier. Although calls to family                       higher rental costs could exacerbate
and domestic violence helplines have                           family and domestic violence levels
been tracking at or below last year’s                          during recovery.

Number of calls to FDV helplines (inc. calls transferred in)

 900

 800

 700

 600

 500

 400

 300

 200
            . .,
 100

       0
           Jun
                   ----~
                   Jul
                         ---==-

                             Aug
                                    -----
                             --:.!!!!=~..---:=----~

                                   Sep      Oct        Nov       Dec      Jan   Feb
                                                                                      -------·
                                                                                      Mar   Apr   May

                                                  Women - Current year
                                                  Women - Previous year

                                                  Men - Current year
                                                  Men - Previous year

                                         Source: Department of Communities

                                                          16
Women                                            Housing and homelessness
Women were disproportionately                    The majority of homelessness demand
affected by unemployment and                     indicators in June 2021 remain elevated
increased caring responsibilities in the         when compared with the same period
early stages of the pandemic. However,           in 2020. The public housing waitlist is
once restrictions were lifted, industries        up more than 18.5% since March 2020.
with high concentrations of female               The rental vacancy rate is 1.2% in June
workers recovered well. For example,             2021, well below the five-year average
while peaking at 8.5% in June 2020,              of 3.9%.
female unemployment fell to 4.6% in
May 2021. This was below the national
female unemployment rate
of 4.7%.

                                                           !z!

                                     :;:a                        i
                                 ~
                                  ~
                                  .,
                                 ~     ii

                                            17
Community and social                              Education
capital                                           School attendance for all public school
Following short snap lockdowns in                 students across weeks 3 to 6 of Term
April and June 2021, the majority of              2 in 2021 was similar to comparative
restrictions on arts, culture, community,         historical data.
sports and hospitality venues have now
been lifted. This has encouraged people           Crime and justice
to reconnect with local friends, family           Following a steady decline throughout
and services, and is improving overall            most of 2020, the prisoner population
community wellbeing while continuing to           increased by 1.9% from October 2020
provide much-needed revenue and jobs.             to May 2021.
A controlled border arrangement is
in place for WA, based on the latest              Child protection
public health advice, and permits                 The number of children in care has
travel interstate and with New                    remained stable in 2021. At the end
Zealand (subject to conditions). This             of May 2021, the number of children
is encouraging Western Australians                in care was 3.1% lower than at the end
to reconnect with family and friends              of May 2020.
from low risk states/territories and
New Zealand.

Youth unemployment
                                            People ('000)
Youth unemployment in May                   220                  Youth employment
2021 was 12.1%, the second-                 People ('000)
                                            220
highest rate of all states/                 210

territories. At May 2021,                   210
                                            200
around 74% of the initial
42,900 jobs lost in the 15                  200
                                            190

to 24-year age cohort has
                                            190
                                            180
been recovered.
                                            180
                                            170

                                            170
                                            160

                                            160
                                            150
                                              May-17          May-18        May-19        May-20      May-21

                                            150
                                              May-17        Source:
                                                              May-18Australian Bureau of Statistics
                                                                             May-19       May-20      May-21

                                            18
Known impacts:
Industry
               -.
Agriculture and                                 Retail and hospitality
primary industries                              Retail trade has been at an elevated
Agriculture, primary industries and             level since mid 2020, bolstered by
food have played an important role in           stimulus and support measures as well
WA’s economic resilience and recovery           as spending diverted by locals from
to date. The sector is the second               interstate and overseas travel. The
largest traded sector and has seen              short term lockdown in the Perth and
considerable investment to unlock               Peel regions in early February 2021
growth opportunities and support                led to a large drop in retail turnover
economic diversification. However, like         that month, but this almost entirely
a number of industries, the sector has          recovered in March 2021. Longer
had to manage workforce shortages               term, the pandemic is expected to
and supply chain vulnerabilities given          reshape jobs, businesses and consumer
its high export market dependence. The          behaviour in these sectors.
state’s relationship with key markets is
vital to maintain and grow this sector.

Agriculture, primary industries and
food have played an important
role in WA’s economic resilience
and recovery.

                                           19
Construction
Activity in the construction industry           1,200 over the same period a year
is vibrant, being supported by a range          earlier. Industry concerns have now
of WA Government funded projects                turned to managing the high demand
and measures. The number of monthly             for labour and materials given the large
dwelling approvals has averaged over            pipeline of work across the state and
2,700 in the first five months of 2021,         constraints on workforce mobility.
compared to an average of just under

Tourism
International border closures and               Interstate travel and international travel
uncertainty around interstate borders           in the shape of the New Zealand bubble
continue to have an adverse impact              have grown visitation but numbers are
on much of the sector. Although                 relatively small as confidence to travel
Western Australians are spending                remains fragile. In prospering regional
record amounts in their own state, this         areas, staff availability is an issue due
has not made up for interstate and              to the lack of international/interstate
international shortfalls. While regional        casual labour. Overall airline service
WA has benefited from increased                 availability is back to three quarters
spending by Western Australians,                of pre-COVID 19 pandemic levels,
Perth, which has traditionally relied on        helped by growth in regional (intrastate)
out-of-state visitation, has struggled.         capacity.

                                           20
International education                         Sport and recreation
While no new international students             Minor impacts have been experienced
are arriving, new enrolments are coming         by the sport and recreation industry
from students who are already in WA             during the two periods of re-introduced
and have decided to study onshore.              restrictions, including postponement of
The net impact has been negative: new           fixtures and training and cancellation of
student enrolments for 2020 declined            some interstate travel. Fitness centres
by 20% and new enrolments for the               and gyms have experienced major
first quarter of 2021 have declined by          financial impacts due to strict closures
32%. Small to medium sized private              and changes to operating guidelines.
education providers that deliver shorter        Uncertainty of future border restrictions
courses have been the most affected             remains the biggest impediment for
as they rely on a continual turnover            travel related events and planning.
of onshore international students to
generate revenue. The WA Government             Culture and the arts
has worked with industry to develop
the International Education Recovery            Restrictions and lockdowns in the first
and Renewal Plan. It was released               half of 2021 have resulted in a further
in December 2020 with a range of                $32 million estimated loss of revenue
initiatives and funding to support the          for the culture and arts industry.
sector, expand online activities and            Market uncertainty and ongoing travel
rebuild the pipeline of international           restrictions continue to limit revenue
students.                                       and employment.

                                           21
Manufacturing                                 Resources and energy
With initial concerns of ensuring             The global economic recovery has led
local manufacturing capacity of               to multi-year highs for the prices of
PPE having been addressed, the                nickel, copper and aluminium, while
local manufacturing industry’s focus          iron ore prices remain high. This has
has turned to realising longer term           led to increases in mineral exploration
opportunities as a result of the              expenditure and commitments for new
pandemic's disruption and other global        projects. Oil and gas prices have also
trends. For example, the WA Recovery          increased since late 2020 but future
Plan provides support for the local           development plans remain uncertain
manufacture of wind turbines and              amid the growing global push for
railcars for the iron ore industry.           decarbonisation. Increased interest in
                                              clean energy is a positive for the state's
                                              emerging renewable hydrogen sector.

                                         22
Defence and related
industries
Activity in the defence industries
remains largely unaffected with the
inclusion of an appropriate essential
worker definition. Infrastructure
investment in Henderson to
accommodate naval sustainment and
construction programs is progressing
as planned. Travel restrictions have
affected the ability of the defence and
related industries to conduct business,
and work with Australian Government
departments and specialised
contractors.

                               Change in employment by industry
                                  All Industries
             Financial and Insurance Services
             Public Administration and Safety
           Health Care and Social Assistance
         Administrative and Support Services
                               Other Services
                 Arts and Recreation Services
   Electricity, Gas, Water and Waste Services
                                                                                                               ·-
                                                                                                              --
Professional, Scientific and Technical Services
                                 Construction
       Rental, Hiring and Real Estate Services
                       Education and Training
                                                                                                   ----
                                                                                                              --    -■
                                Manufacturing                                                                 -           ,
                                  Retail Trade
                                        Mining
                              Wholesale Trade                                                                     --,
           Transport, Postal and Warehousing
              Agriculture, Forestry and Fishing
          Accommodation and Food Services
  Information Media and Telecommunications

                                                   -40%             -30%            -20%             -10%             0%      10%   20%

                                                          ■ 14 Mar 2020 to 18 Apr 2020     ■ 14 Mar 2020 to 5 June 2021

                                                                           Source: Australian Bureau of Statistics

                                                                      23
Known impacts:
Regions

WA’s nine regions are vital to the state’s economy. They are home to key agriculture,
mining, manufacturing and tourism industries. They account for one quarter of the
state’s population and produce around one third of the Gross State Product and
95% of exports.

Employment
WA’s regional economy is recovering                                                               Job advertisements in the regions
strongly, with more than 15,000 jobs                                                              continue to grow and Australian Bureau
created over the last 12 months and job                                                           of Statistics labour force data for May
advertisements continuing to increase.                                                            2021 shows employment recovery
There are now more jobs in the regions                                                            in regions has been strong.
than people to fill them, with most
                                                                                                  In the three months to May 2021,
regions at or near full employment and
                                                                                                  employment in regional WA sits 1.7%
job vacancies across all levels of skilled
                                                                                                  above pre-pandemic levels compared
and unskilled employment sectors.
                                                                                                  to 2% higher in greater Perth.

                                                Job advertisements by regions
1,600                                                                                                                            Kimberley
                                                                                                                                 Pilbara
1,400
                                                                                                                                 Mid West-Gascoyne
1,200                                                                                                                            Wheatbelt
                                                                                                                                 Great Southern
1,000
                                                                                                                                 Peel
800                                                                                                                              Southwest
                                                                                                                                 Goldfields-Esperance
800

400

200

0            =
             0
                 20
                  20 0 2
                               0
                                      0
                                        20          20 0 20                20 0 2 1 0 2
                                                                                             1          21      0
                                                                                                                  21        21
         2    2 0         2         2           2 0        2             0        2     2           2 0       2         2 0
      6/                          /                                    2                                    /
           7/          8/        9           0/         1/          2/         1/    2/          3/        4         5/
  0/0 1 /0        1 /0       0/0        1 /1        0/1        1 /1        1 /0 6/0         1 /0        0/0 1 /0
3     3         3          3          3           3          3           3         2      3           3       3

                                                         Source: Seek.com

                                                                                           24
Housing
Most regions are experiencing                   hospitality, tourism, construction,
significant tightening in the rental            education and health.
market. High demand for regional
housing is driving new building                 Access to labour markets to address
approvals to record levels. Building            the shortages has been disrupted
approvals are currently over three times        by the pandemic, particularly those
what they were during the height of the         sectors which rely on seasonal workers.
pandemic. This demand is most evident           In response, the WA Government
in the Southwest and Peel.                      is working to increase the regional
                                                workforce through initiatives like the
Labour and skills                               Work and Wander out Yonder and the
Regional WA has a persistent                    Paid Escape programs (attracting
shortage of service workers across              city-based workers to the agricultural,
multiple sectors compounding an                 tourism and hospitality sectors in
already challenging service delivery            regional WA) and Seasonal Worker
environment. Shortages are most                 Program/Pacific Labour Scheme.
pronounced in primary industries,

                                           25
Childcare                                       Remote Aboriginal
Childcare is a critical determinant
                                                communities
of liveability for the regions and a            Several remote Aboriginal communities
workforce enabler. Across regional              remain closed or only partially open
WA there is an ongoing shortage of              to visitors. Ongoing cooperation and
childcare workers with centres reporting        collaboration between the government
challenges with attracting and retaining        and Aboriginal communities continue
qualified staff to meet mandatory               to respond to the safety and wellbeing
staffing ratios.                                of members of remote Aboriginal
                                                communities across the state.

                                           26
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