The Australian unemployment rates are expected to rise as an onset of the global economic recession.
There has been much speculation in past months about the flow on effects for Australians in the wake of the global financial crisis. It seems that unemployment will be a major casualty.
John Quiggin from the University of Queensland prophesises, “Australia has not been hit, but a lethal cloud of fallout is gradually drifting southwards” The economic downturn is having an impact on households nationwide, with slowing businesses and increased living expenses. However with the global economies being slowed by Governments in attempts to stem the economic recession, so job opportunities will continue to become scarce.
As Quiggin says, “Governments need to prepare now for the downturn in employment that appears inevitable”.
Indeed the economic growth is predicted to only further slow in the new year, as unemployment rates depreciate. Westpac Chief Economist Bill Evans says “the rate of economic growth may contract during the first half of 2009 because of rising unemployment”.
This bodes as bad news for many Australian families who will be unable to make ends meet if there remain steady job cuts and limited new employment opportunities.
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