The Rudd Government has received a ringing endorsement for its stimulus package, with research from the Organisation for Economic Cooperation and Development showing that the Government’s measures prevented the loss of 150,000 to 200,000 jobs in 2009.
The OECD’s employment outlook says employment in Australia will still fall by 1.4-1.9% in 2009, but argues that this is far less than if the stimulus measures had not been put in place.
However, the report cautions that the global employment situation remains ugly. Unemployment across advanced economies is tipped to hit 10%, leaving 57 million people out of work.
Treasurer Wayne Swan and Deputy Prime Minister Julia Gillard did well not to gloat too much. “This sobering global outlook confirms the massive challenge we still face as unemployment continues to rise here and around the world, and underscores the vital importance of delivering our stimulus measures in full to keep as many Australians in work as possible,” the pair said in a statement.
Shares hit one-year high
Despite the grim look for the global economy, the Australian sharemarket had reached its highest point in the last 12 months in early trade.
The benchmark ASX-S&P 200 index rose 72.8 points or 1.6% to be at 4723 points at 12:05 AEST.
The big winner of the morning was Wesfarmers, whose shares jumped 2.9% to $26.34, while the four major banks all increased by more than 1%.
Shares in Telecommunications giant Telstra continued to gain ground and were up 1.2% this morning to $3.28.
The big corporate news of the morning came from Fairfax, where chairman Ron Walker is expected to officially announce his intention to step down in 2010. The company’s shares have jumped 4.2%.
In other corporate news, Lion Nathan shareholders have agreed to accept a $3.4 billon takeover deal from Japanese brewer Lion Nathan, while pay television company Austar has managed to secure a debt extension to 2014.
Manufacturing sector confidence continues to climb
A new survey by Westpac and the Australian Chamber of Commerce and Industry has showed industry activity has recovered to its best level in a year, with confidence at a 15-year high.
However, measures of labour growth shows that employment is likely to lag well behind the big jump in confidence.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
