Securing Your Financial Future by Future Proofing Your Career

Amid the onslaught of business closures, job losses, layoffs and workforce furloughs, brought about by COVID-19, the Australian government delivered a total of AUD 173 billion in stimulus aid to its citizens. The government’s 2020-21 budget commits a further AUD $25 billion to support COVID-19 response measures, which puts the total pandemic recovery spending, since the crisis started, to AUD $198 billion. The package is split between economic measures (AUD 184 billion) and enhanced healthcare spending (AUD $14 billion).

Some of these measures include:

• JobKeeper Payments (AUD 101 billion)

• Supporting Apprentices and Trainees (AUD 2.8 billion)

• Income Support for Individuals (AUD 16.8 billion)

• Boosting Cash Flow for Employers (between AUD 20,000 and $100,000 paid to 800,000 employers)

• Small and Medium Enterprises Guarantee Scheme (AUD 40 billion)

• Supporting Pensioners (AUD 12 billion)

• HomeBuilder Grants (AUD 25,000 paid to over 1 million Australians)

It’s clear that the future of the Australian workforce is a primary concern to the government. Of the economic measures put in place by the government, a lion’s share of the funding is set aside to supporting businesses stay afloat and helping them maintain existing jobs.

Global Impact…Similar Response

Among the world’s leading economies, Australia’s COVID-19 fiscal and monetary response isn’t exactly the largest. In terms of GDP, Australia’s stimulus package ranks 14th amongst a group of 168 nations, with Japan and Luxembourg at number one and two respectively. Other jurisdictions around the globe are doing the same through both fiscal and monetary measures. For instance, the U.S., which ranks 10th in its response, pumped unprecedented amounts of fiscal support and stimulus into its economy. Some of these measures include:

• Coronavirus Preparedness and Response Supplemental Appropriations Act

• Families First Coronavirus Response Act

• The Coronavirus Aid, Relief, and Economic Security (CARES) Act

• Paycheck Protection Program and Health Care Enhancement Act

• Consolidated Appropriations Act, 2021

All told, the total “measurable” cost of the U.S. stimuli comes in at around $3,546 billion. But that’s not the whole picture. To get that full picture, you must add up the impact of the Federal Reserve’s (Feds) monetary stimulus measures, which are not always straightforward to quantify. Some analysts estimate that additional amount to be north of the $4 trillion figure.

Ordinary Australians, Americans and citizens around the world could be forgiven for thinking that, with such amounts of money flowing into the economy, things will soon get back to normal. Those rendered unemployed may feel confident that soon, they’ll return to the workplace and start rebuilding their professional and financial lives. But that might not be so easy!

Dealing with a New Workforce Reality

While the stimulus measures might provide much needed short-term relief, business and business professionals must look beyond today’s horizon. The financial measures enacted and implemented today, will impact the financial future of organizations and individuals for decades to come. Why: It’s the growing deficit! And that ever-ballooning figure could wreak havoc with the financial futures of many – especially unemployed or marginally-employed business professionals.

In Australia’s case, in 2020-21, the national deficit is forecast to be AUD 213.7 billion (11.0 per cent of GDP). By 2023-24, this figure is expected to improve to AUD 66.9 billion deficit (3.0 percent of GDP), tapering to a $49.5 billion deficit (1.6 percent of GDP) by the end of the medium term.

For the U.S., things might be more sluggish over the next few years.

According to The Committee for a Responsible Federal Budget, a nonpartisan, non-profit organization focused on public education around issues pertaining to major fiscal policy impact, the combined U.S. stimulus measures and recession impact will push the U.S. deficit for 2020 to $3.8 trillion. It improves in 2021 - $2.1 trillion – but only if everything moves according to plan, which it seldom does! By 2025, those deficits are estimated to grow to 107% of the nation’s GDP, and may top 120% by 2030.

So, what does that mean for businesses and business professionals that are either forced out of work, or who are facing the prospect of becoming “redundant” soon?

Future Proof Your Career and Financial Future

Well, here’s the reality of the new workforce:

Even if businesses return…they’ll likely not hire too many of their previously laid off staff - at least not at first. And, even if they do rehire, the jobs might not be the same. Businesses must evolve and reinvent themselves to deal with post-COVID economic realities. They’ll have to embrace new and disruptive business models to thrive and survive. In the new business world, many of the old (pre-pandemic) career paths will likely not exist anymore. Like their employers, existing professionals, especially in the business and finance sector, will need to future proof their careers to ensure their financial future.

Technology will be at the centre of most future careers, and the only hope for survival, in a fiercely competitive future workforce, is to embrace a career path that makes effective use of business, finance and technology. Unfortunately, FinTech skills aren’t very prevalent in today’s workforce. That’s why the Financial Technology program at UNSW Online prepares business professionals to fill that void.

Employees recently laid off, those who may face the prospect of joblessness soon, or those who wish to assure their future careers, may do so by equipping themselves with a Master’s in Financial Technology from Australia’s #1 ranked Accounting and Finance learning centre, and a global Top-50 institution. Regardless of where in the world you might be, the online program ensures that everyone – Australians, Americans, Japanese or Koreans – all have equal opportunity to benefit from a program accredited by AACSB International Business Accreditation and EQUIS.

Hoping that your financial future will revive itself, once global economies come back to life, isn’t a prudent financial planning strategy. Taking steps to futureproof your career, so you might quickly integrate yourself into tomorrow’s workforce, is the only way to assure your financial future.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes