Dumping stimulus may cost ‘100,000 jobs’

Written by: parisalexandra - Posted in: Job Articles

Australia’s unemployment rate will probably peak at about 7per cent, but warned another 100,000 or more people could lose their jobs if the Government’s stimulus package is dumped indicated by Ken Henry, Treasury Secretary.

Dr Henry confirmed the nation’s economy was improving and said it was no secret gloomy forecasts from the May budget would be revised up later this year, but declined to update those predictions during yesterday’s Senate committee hearing. However, he confirmed Treasury still believed the economy would not return to above trend growth above 3per cent until 2011-12, as predicted in the Budget.

There was further evidence yesterday Australia is outperforming the world economically, with the country now regarded the second best financial centre in the world. The World Economic Forum’s Financial Development Index ranked Australia first in financial access, fifth in banking and third in non-banking financial services.

The Opposition has been calling for the stimulus to be wound back more quickly given the strength in the economy and a better-than-expected performance in the labour market, especially in the wake of the Reserve Bank’s surprise decision to begin raising interest rates this week.

But Dr Henry warned against cancelling planned stimulus measures, saying it would ”risk stalling the economy and causing a steeper rise in the unemployment rate”.

Source: http://www.canberratimes.com.au/news/local/news/general/dumping-stimulus-may-cost-100000-jobs/1645713.aspx

Bookmark Us