Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Evans. Can the minister please inform the Senate of the labour force data that was released earlier today? What is the outlook for Australians who are looking for work?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to 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.

Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Could the minister outline to the Senate how Australia’s employment numbers compare with other advanced countries?

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

Australia’s unemployment rate of 5.8 per cent does remain lower than any of the major advanced economies except Japan. In the US, the unemployment rate has reached 9.7 per cent, its highest in 26 years. In the United Kingdom, the unemployment rate is now at 7.8 per cent. In Canada, the unemployment rate is 8.7 per cent. And in the Euro area, unemployment has reached 9.5 per cent. Since September 2008, employment in Australia has fallen by just 0.3 per cent. This compares to much higher falls in the US, Canada and the UK. These figures demonstrate that the government’s approach is working to assist in retaining jobs, helping Australians stay in work. Without that action, unemployment would be much higher today. Compared with the rest of the world we are doing well but we are in a very difficult circumstance. (Time expired)

Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister explain how the government’s stimulus efforts have helped to cushion the impacts of the global recession on Australia’s jobs?

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

Australia has coped with the global financial storm because of this government’s assertive and timely policy stimulus. That stimulus plus the combined efforts of employers and employees have helped to lessen the impact of the global recession on jobs. It is our government’s policy actions that continue to be critical factors in supporting the economy—the initial fiscal stimulus to households and businesses combined with a longer term effect from the infrastructure programs. This government knows that we will face a big jobs challenge ahead. The unemployment rate will continue to rise as the effects of the global recession impact our economy. We have already seen unemployment rise by 200,000 people in Australia.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

So all good things are because of your policies!

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

Quite frankly, Senator Abetz, if you had had your way, we would have seen at least another 200,000 people out of work. The stimulus, which you opposed, has supported jobs and continues to support jobs. I urge you to support the— (Time expired)