Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Hurely for the question. Today’s labour force figures show that employment fell by 27,100 people in August. The unemployment rate held steady at 5.8 per cent, supported though by a fall in the participation rate. The participation rate is still at a high level but it did fall. Everyone is concerned by job losses, which is why the government has acted decisively to stimulate the economy and to support jobs. Today’s figures demonstrate that the government stimulus and combined efforts of employers and employees has helped cushion the impact of the global recession on job losses. The effectiveness of the government’s stimulus in supporting jobs and effort by businesses may mean that unemployment peaks somewhat lower than we originally forecast in the budget. If that is the case, I am sure all senators would welcome it. Unfortunately, though, the unemployment rate will continue to rise as the effects of the global recession continue to wash through our economy.

Even though the Australian economy is looking much stronger than the rest of the world, we need to remember that it will take time for the full effects of the global recession to be felt. We do know that without the stimulus unemployment would be much higher. We know that the government’s action and the combined efforts of employers and employees have helped cushion the impact of the global recession on jobs. Treasury have estimated that without the government stimulus the unemployment rate would peak 1½ per cent higher, or up to 210,000 more Australians who would be out of work by June 2010. The stimulus is supporting jobs now; it will support jobs in coming months. While unemployment in other advanced economies is forecast to reach double figures, our stimulus package will ensure that we should not reach those sorts of levels of unemployment.