Australia sees job loss more than 8%

Australia’s coming budget will predict unemployment to peak above 8%, leaving a million people out of work, as the economy records its first annual contraction since the early 1990s.

The Australian, quoting disclosed information from a closed-door meeting of state and national governments on Thursday, said the May 12 budget would also estimate 0.5% economic contraction for the year to June 2010.

Treasurer Wayne Swan had told the meeting that Australia’s economy was set to do its long-term trend into 2010-11, pushing unemployment to the “mid-to-high eights”, the Australian said, quoting officials who presented in meeting.

This suggested the number of unemployed would increase by more than 50% from its present stage of 650,000. The unemployment rate stands at 5.7%.

The centre-left government’s predicts would be the most negative of any budget, showing zero development on average over 2008-09, a contraction in 2009-10 and a return to development in 2010-11 though under long-standing growth of about 3%.

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