A new report launched by Social Ventures Australia (SVA) and the Centre for Social Impact (CSI) calls for reforms to support the charity sector as post-COVID recovery partners – following findings that charities are one of the largest employers in Australia.
The report finds that charities employ more people than the mining and manufacturing sectors combined, are key players in Australia’s economy contributing the equivalent of 8.5% of direct and indirect value to GDP, and could be an important source of job growth.
New modelling published in the report also reveals that under the revised JobKeeper payments 110,000 people employed by charities are still at high risk of becoming unemployed by September 2020, with a further 70,000 by September 2021.
“While people intuitively understand the role charities play in binding the social fabric of their local communities, they may not realise charities also make a sizeable economic contribution.” said Suzie Riddell, SVA Chief Executive Officer.
“Charities are the unsung heroes of our economy.”
“Charities employ more people than mining and manufacturing and they’re more concentrated in sectors with strong prospects for future job growth like health care, disability services and education.”
W”e all need Australia’s charities to make it through this crisis in a financially viable position, and ultimately a more financially sustainable position than they came into it.” said Kristy Muir, CSI Chief Executive Professor.
“Charities play a critical role in Australia’s community, society and economy. They provide essential services to the most vulnerable at a time of increasing need, they strengthen communities and society and, as our report outlines, they also contribute the equivalent of more than 8 per cent of combined value to Australia’s Gross Domestic Product. Their direct value-add is on par with retail trade.
“Charities are key to jobs now and in the future. They employ 1.3 million people or around 1 in 10 workers.
“Before the crisis, 75% of charity sector employees were working in organisations with an operating surplus. Only 3% were in organisations at high risk to their viability.
