Jobless rate will be even higher: Gillard

Submitted 14/04/2009

AAP

The jobless rate has soared to its highest level since December 2003, and is destined to go far higher as the global recession takes it toll on the economy.

New data released today showed the jobless rate jumped to 5.7 per in March from 5.2 per cent in February - 1.8 percentage points higher than the 34-year low of 3.9 per cent recorded in February last year.

Some economists say that such a move does suggest the Australian economy is already in a recession.

Thursday's result shows the jobless rate was growing faster than the Government had predicted just a few months ago.

It had forecast an unemployment rate of 5.5 per cent by June and 7 per cent by mid-2007.

Revised forecasts will be announced in the May 12 budget.

Worst hit in this rapid rise in unemployment was NSW where the rate jumped to 6.9 per cent from 5.9 per cent the previous month.

Nationwide, the number of people employed dropped by a seasonally adjusted 34,700 in March. There was a 38,900 slump in full-time workers, while there was a small rise in part-time workers.

Economists had expected total employment to fall by 25,000 in March and a jobless rate of 5.4 per cent.