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Australia’s unemployment rate hits five-year high

Australia’s unemployment rate hits five-year high

Australian jobs fell by their largest ever during the month of April with layoffs of hundreds of thousands of employees in companies and factories in response to the closures followed by the Australian government to reduce rates of infection with the Coronavirus.

Australian Bureau of Statistics data on Thursday showed that the unemployment rate rose to 6.2 percent, which is the highest level since September 2015, after it was 5.2 percent in March. However, it came lower than analysts’ projections of 8.3 percent.

On the other hand, the employment in the Australian economy decreased by 594,300 jobs during April, marking the largest decline ever faced by the Australian economy.

The participation rate fell 2.4 percent to about 63.5 percent in April, the lowest level since 2004, and well below expectations for 65.5 percent.

It is reported that this data is among the first official unemployment report in Australia since the travel restrictions related to the Corona virus forced 19 companies to close since late March.

The Reserve Bank of Australia (RBA) expected that the country's gross domestic product would shrink by 10 percent in the first half of the year, with unemployment reaching 10 percent by June and maintaining its high until 2021.

As of 11:20 GMT, the Aussie dollar extended its drop for a fourth straight session at $0.6414, halting its rally over the past weeks. 

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