Friday, December 23, 2011

Australia: Unemployment rate set to soar

Financial experts claim that up to 100,000 Australian jobs could be cut in the months following Christmas.

Westpac chief economist Bill Evans maintains that lead indicators point to a very weak employment growth next year, reports The Daily Telegraph.

"We would expect the unemployment rate to edge up to 5.75 over the next six months," said Evans.

But it's not all doom and gloom with economists suggesting that Australia's shaky economy could push interest rates down to 3.5 per cent by the end of 2012.

"The Reserve Bank would have to cut the cash rate by at least half a per cent to counter (the job losses)" added Evans. Read More