Up to 200,000 jobs could go

Published: October 23, 2008 - 03:24 PM

By Amanda Edmonds

Economists are predicting that 200,000 Australians may lose their jobs as a result of the global financial crisis, the Australian reported on Sunday.

The National Australian Bank has predicted this will happen by the end of next year, with economic growth dropping to 1.25 per cent, interest rate cuts to 4.5 per cent and unemployment rising to 6 per cent. This equates to 200,000 jobs.

NAB’s chief economist, Alan Oster, said the uncertainty regarding jobs is likely to lead to a quiet Christmas for retailers, despite the federal government’s rescue plan designed to stimulate spending and keep the money moving.

"I think Christmas is going to be a lot slower and weaker and then it will continue getting weaker into next year,'' Mr Oster told Fairfax.

"We expect slow growth and an increase in unemployment,'' he told Fairfax.

Further problems are also likely to develop if people decide to save the $10.4billion the government has promised pensioners, new home owners and eligible families with children, according to Professor Guay Lim, from the Melbourne Institute for Applied Economics and Social Research.

What is needed, according to Professor Lim, is for people to “maintain a level of spending and buying” around Christmas time. “We cannot save excessively because the economy will go into a tailspin” he said.

However, a spokesman for the NSW Business Chamber said consumers are resisting spending despite the extra incentive from the government.

With no end to the economic crisis in sight, shopping around for the best prices on essentials such as electricity and gas, is essential to making ends meet. ShopAround.com.au makes comparing the major providers such as AGL and Origin, with the smaller newer companies, and getting the cheapest prices, easy. The savings made from this can then be spent on more important things and with Christmas coming up, this is more important then ever.

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