Aussie shoppers: why your economy needs you Doing their bit for the economy ... Melbourne shoppers Emma and Rose Zito. Picture: Andrew Henshaw Source: News Limited IF you're only just hitting the stores today, you're late. Retailers have been discounting heavily in the lead up to the traditional Boxing Day sales in a bid to lure cautious consumers. On the front line of the economy ... Shoppers in Pitt Street Mall in Sydney. Picture: Jeff Darmanin Source: Supplied Much is riding on this crucial Christmas and New Year's trading period, which can make up half of retailer's profits for the year. RETAIL: Boxing Day sales go high-tech in 2013 The retail sector is the second biggest employer of Australians after health care and social services. Put another way, almost 1.3 million jobs are riding on your willingness to shop. So is now a good time to splurge? Don't get me wrong, there are reasons to be cautious. Joblessness is tipped to rise in the New Year, from about 5.8 per cent to above 6 per cent. A soft jobs market means wages are not expected to rise in real terms this financial year. Inflation in prices will gobble up the average pay rise. All this bad news, and more, was revealed last week by Treasurer Joe Hockey's first budget update. The budget next May is likely to contain a few nasties as the government seeks to prevent a decade of deficits and spiralling debts. But there are also reasons to be positive. Interest rates are at historic lows. Many households are ahead on their mortgage payments after spending several years making excess payments. House prices are rising again, along with the share market and retirement nest eggs. "The global financial crisis caused the biggest ever drop in wealth for Australian households," according to CommSec chief economist, Craig James. However wealth levels have been repaired over past couple of years and are now back at record highs. Looking overseas, the US economy is recovering, putting a rocket under the US currency. Our turbo charged Aussie dollar has slipped below US 90 cents as a result, which will help to protect jobs in tourism and manufacturing. It will also make imported goods more expensive down the track. Our economy is riding on a consumer-driven recovery to replace the mining boom. Aussie shoppers: Your economy needs you.