Australian Unemployment Rises Sharply
March 13th, 2009 | Published in Jobs
Australia’s unemployment total has risen sharply, to 590,000, the highest figure since July 2003.
As the credit crunch takes its toll worldwide, Australia’s unemployment rate has moved upward from 4.8 to 5.2 percent after the country suffered the largest monthly drop in full-time jobs since 1991.
Despite the rising total, approximately the same number of people are in jobs – but more work is being done on a part-time basis. Full-time employment decreased by 53,800 to 7,664,200 and part-time employment increased by 55,600 to 3,146,200.
A number of Australia’s employers are under severe pressure, including GM Holden, a subsidiary of the giant American carmaker.
Executives at GM Holden have announced they will take a ten percent pay cut until the end of the year, as the company grapples with doubts over the future of General Motors in America and plummeting demand domestically. New vehicle sales were down 22 percent in February according to data from the Chamber of Automotive Industries and Ford Australia has cut production by about fifteen percent.
Despite bad news in some sectors, it’s not all bad news on the employment front.
National Australia Bank is not working to any job reduction targets.
Chief executive Cameron Clyne said yesterday, “None of our businesses are working to job reduction targets”. On the contrary, NAB plans to add over 100 business bankers in 2009.
National Australia Bank will cut its first half dividend by about 25 percent and seek to boost its Australian business as – unlike its American and British competitors – it is in a position to chase potential acquisitions of other banks made vulnerable by the global financial crisis.
Australia’s vital energy and mineral export earnings are also holding up well, rising nine percent in the December quarter newly released figures show.
The Australian Bureau of Agricultural Resource Economics found the recent fall in commodity prices was compensated for by a 24 percent drop in the value of the Australian dollar versus the US dollar.