Australia: Real rate of unemployment is likely to hit 19% by the middle of 2020 – Goldman Sachs
|Analysts at Goldman Sachs offer their take on the Australian labor market situation, in the face of the coronavirus outbreak.
Key quotes
“Australia's effective unemployment rate is adjusted for hours worked and labor-force participation.
This real rate of unemployment is likely to hit 19% by the middle of this year.
Many workers will be nominally employed under the government's wage subsidy program.
But working very few hours.
Others will leave the labor force.
Will boost part-time work and voluntary labor force exits.
And significantly undermine the usefulness of standard measures of underemployment and underutilization.
Expect an associated slowing for wages growth.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.