Financial meltdown to cost jobs

Although Australia is well equipped to survive the current global financial crisis, the meltdown will cost jobs, says Prime Minister Kevin Rudd.

“We've entered a new and damaging stage in the global financial crisis with real impacts on economic growth and jobs around the world and with real impacts on economic growth and jobs here in Australia,” he said.
 
Treasury forecasts tip the unemployment rate to rise from the current 4.3 percent to more than five percent next year. AMP Capital economist Shane Oliver predicts that it will hit six percent by June 2009: “The big worry for Australians is rising unemployment, people cut back on spending and there is a risk to the housing market.”