If the Morrison government's decision to ease COVID-19 isolation restrictions works out, the massive labour shortages that have half-crippled essential services across the country may finally come to an end. National Cabinet agreed yesterday to extend reduced furlough arrangements to multiple sectors, including transport, freight, and logistics; health and welfare; emergency services; utilities; critical goods; all the sectors directly supporting these; and a good many others.

Under the reduced furlough arrangements, people in these sectors who are close contacts of a positive COVID-19 case will be allowed to return to work if they test negative on a rapid antigen test (RAT), instead of having to self-isolate for seven days (10 days in South Australia.) Without the change, as many as 15 percent of Australian workers might end up withdrawn from the workforce, either because they are directly affected by the restrictions, or because they have to take on additional caregiving responsibilities as a result of family members being affected.

Businesses have been demanding this easing of the restrictions for months, with some business leaders and owners criticising individual states' responses for being too onerous and inconsistent. However, even after abandoning the COVID-zero strategy, the federal government has continued to take a conservative approach for fear that rising cases would overwhelm hospitals and intensive care units - as had happened in multiple countries early on in the pandemic.

Prime Minister Scott Morrison reiterated that stance at yesterday's press conference on the Cabinet decision, repeating that the relaxing of restrictions is a trade-off for the risk of more cases. "The less restrictions you put on people to get them at work, the more pressure that can potentially put on your hospital system. And vice-versa. The more you try to protect your hospital system, the more people you’re taking out of work, which disrupts supply chains," he said.