Australia’s unemployment rate will peak at 7.5 per cent rather than 8.5 per cent, Access Economics’ new Business Outlook report has found.
According to the report, released today, Australia is through the worst of the global financial crisis, which means unemployment should not rise to the high levels predicted six months ago.
The government is still forecasting a shrinking economy, but Access said the economy will grow slightly this financial year.
The report also predicted historically low interest rates would begin to rise again late next year.
''In brief, Australia has been dodging global bullets thanks to a combination of fancy footwork and lots of luck. But some of the fancy footwork won't help as much from here cash handouts are dropping to a trickle, and the Reserve Bank will do little further from here,” the report said.