Unemployment in Australia Reaches 7.1%, Worst in More than 15 Years

The government has committed aid funds of up to A$259 billion ($178 billion), which is equivalent to 13.3 percent of its GDP

The unemployment rate in Australia touched 7.1 percent in May and stood at the worst level witnessed in over 15 years, which is moving for the first recession in nearly three decades due to the impact on the economy caused by the coronavirus or COVID-19 pandemic, as per official data published on Thursday.

"The fall in employment (in May) close to a quarter of a million adds to the 600,000 (new unemployed) in April, which totals a fall of 835,000 people (who have lost their jobs) since March," the senior representative of the Australian Bureau of Statistics, Bjorn Jarvis mentioned.

Unemployment figures have increased markedly since March, when Australia closed its borders and ordered the closure of nonessential businesses to curb the spread of the virus, which has infected 7,370 people in the country, with 102 deaths, reports Efe news

Unemployment in Australia

Job application
Job application YouTube Grab

"In two months, the percentage of people aged 15 and over employed in Australia decreased from around 62.5 percent to around 58.7 percent," Jarvis said, adding that women had been more affected by the crisis than men and that younger people had found it harder to keep their jobs.

He said that about "2.3 million people, around 1 in 5 employed people, were affected by either job loss between April and May or had less hours than usual for economic reasons in May".Responding to the figures, Prime Minister Scott Morrison said that "these are dark times" and stressed that his government "will not rest and will work on the biggest economic challenges the country has seen".

The government has committed aid funds of up to A$259 billion ($178 billion), equivalent to 13.3 percent of its GDP. By 2020, the Federal Reserve Bank of Australia estimates that GDP will drop by six percent and the unemployment rate may reach 10 percent in the country, which had registered almost 30 consecutive years of economic growth.

(With agency inputs)

Related topics : Coronavirus