Australian jobless rate rises to 5-year high 5.7%

Thursday 9th April 2009

Australia's unemployment rate rose to a five-year high as the nation sinks into what may be its first recession since 1991 and companies trim their workforce in response to the downturn in demand.

The jobless rate rose to 5.7% last month, from 5.2%, according to the Australian Bureau of Statistics. The economy shed a greater-than-expected 34,700 jobs in March from February.

Australia's central bank this week cut its benchmark interest rate by a quarter point to a 49-year low of 3%, saying there's evidence that the global economic contraction continued into the first few months of 2009.

"Conditions in global financial markets have continued to improve gradually, helped by progress towards a resolution of banking system difficulties in the U.S. and other major countries," Assistant Governor Malcolm Edey said in a statement. Still, "sentiment remains fragile," he said.

The Australian dollar fell to 70.76 U.S. cents after the report from 70.93 cents immediately before it was released.

Full-time jobs fell by 38,900 in March while part-time positions rose by 4,200, according to the report.

The participation rate was unchanged at 65.5%.

Businesswire.co.nz

Comments from our readers

No comments yet