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Australian unemployment rate to top 10 pct: treasury

Xinhua News,CANBERRA
2020-04-14 10:45

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CANBERRA, April 14 (Xinhua) -- Australian Treasurer Josh Frydenberg warned that the nation's unemployment rate will double.

According to the projections released by the Treasury on Tuesday, unemployment will hit 10 percent in the June-quarter due to the COVID-19 pandemic, up from 5.1 percent in the most recent data.

If not for the government's 130 billion Australian dollar (83.2 billion U.S. dollar) JobKeeper wage subsidy package, which comes into effect in May, unemployment would have peaked at 15 percent according to the Treasury projections.

Frydenberg said the data proved that the government's economic stimulus measures were working.

"The economic shock facing the global economy from the corona­virus is far more significant than what was seen during the global financial crisis over a decade ago," he said.

"The government's economic support measures are temporary, targeted and proportionate to the challenge we face and will ensure Australia bounces back stronger on the other side, without undermining the structural integrity of the budget which Australians have worked so hard to restore."

Frydenberg also said the government has recently taken action with 320 billion Australian dollars or 16.4 percent of GDP in economic support for the Australian financial system, businesses, households and individuals affected by the coronavirus.

The Australian Broadcasting Corporation said in its report that a 10-percent unemployment rate would represent 1.4 million Australians out of work. And it would be the first time that unemployment in Australia has reached double figures since April 1994.
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