West Australian Premier Mark McGowan has warned that a recession is coming next year. His comments came while fielding questions from reporters about an ongoing pay dispute with striking nurses.
McGowan said that the current economic conditions were not conducive to a pay increase for nurses, and that a recession was a real possibility next year. He reiterated that the current deal on offer was generous, and that the government was doing all it could to avoid a recession.
The Premier’s comments come as the state’s economy continues to contract. GDP growth in Western Australia has been negative for four consecutive quarters, and the state’s unemployment rate is the highest in the country.
The pay dispute between the state government and nurses is ongoing, with no end in sight. Nurses have been striking for several weeks, and have rejected the government’s latest offer of a 2.5% pay increase.
The Premier’s comments will do little to ease the tensions between the government and nurses. The nurses’ union has accused the government of being in denial about the state of the economy, and has demanded a pay increase of at least 4%.
