Unemployment in Australia will be a central issue on the upcoming elections
Australia rising unemployment is a major issue on the upcoming elections this autumn. The number of jobless people in the country has grown as the mining boom faded due to weakening demand from China. The unemployment in June did not rise and stayed at 5,7%, but the reason for this was because fewer people were looking for jobs.
The numbers of the employed people fell with 10 000 and most of them were in full-time positions. The number was 5,1% just a year ago and the government has projected that it will rise to 6,75% from its current level in 2014. The GDP growth for fiscal 2013 is forecasted at 2,5% which is also lower than the previous year. The Australian Central Bank has already cut the interest rate to 2,5%. The series of eight consecutive has however failed to increase the aggregate demand and to produce any significant rise on the economic growth.
The main beneficiary of the rate cut was only the housing sector in the country. The prices of the houses have risen during the last year. The other sectors of the economy have however remained flat, which means that there may be more cuts during the reaming part of the year.
The current Prime Minister has already promised that if he wins the election there will be a stimulus package for the Australian auto industry. The liberal opposition, on the other hand, has promised to implement austerity measures in order to fight with the rising budget deficit. “It’s clear that the sluggishness in the broader economy is being reflected in the labour market.
Businesses are treading water. Trading conditions are holding at the worst levels in four-years and employers are not keen to take on additional staff,” said Craig James, chief economist at Commsec. As the boom of the mining sector has faded away many companies have been hesitant to hire new people and their focus have changed to productivity and cost control.