Fed: Jobless numbers expected to rise again

AAP General News (Australia)
04-12-2001
Fed: Jobless numbers expected to rise again

CANBERRA, April 12 AAP - The number of people out of work is tipped to rise for the
sixth straight month when new jobs figures are released today.

Most economists expect the unemployment rate to remain at 6.9 per cent or edge up to
seven per cent - a level not seen since December 1999 - fuelled by a net loss of up to
10,000 jobs during March.

There were 673,800 people out of work in February, the highest figure since October
1999 - which recorded the number of unemployed at 677,200.

"With anecdotal evidence of further weakness in construction employment, and reported
uncertainty in retail employment, we suspect March employment conditions were weaker than
usual," Westpac economist Justin Smirk said.

The outlook for jobseekers continues to worsen, with the Department of Employment's
Leading Indicator falling in February, the 13th straight monthly decline.

The indicator measures six key pieces of economic data to paint a picture of the likely
employment trend over the next eight months.

"The trend in the indicator suggests that employment growth is likely to remain below
its long-term trend rate at least until the end of 2001," the department said.

It follows the release of job vacancies data from the Australian Bureau of Statistics
showing a 12.8 per cent fall in February and the ANZ Bank's survey showing jobs advertised
in major newspapers dropping 7.9 per cent in March to their lowest level in four years.

Meanwhile, the government is claiming success with its Job Network initiatives, with
20,700 people surrendering their benefits rather than undertake one of two compulsory
job training programs.

Employment Services Minister Mal Brough said jobseekers who took part in the Intensive
Assistance program were 47 per cent more likely to find work or give up their benefit
than jobseekers who did not.

AAP kmh/arb/sb

KEYWORD: ECONOMY DAYLEAD

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