Government urged to rethink PS job cutsThe Government is being urged to reconsider jobs cuts to the Australian Public Service after Treasurer, Joe Hockey said he was worried about the latest forecast for unemployment.
Labor Member for Fraser, Andrew Leigh said a re-think was needed given the new International Monetary Fund forecast and uncertainty about the United States' economy.
Australia's unemployment rate is set to rise in 2014, with the IMF downgrading growth prospects in its latest World Economic Outlook which outlines future risks for Australia and the global economy.
The IMF forecasts Australia's growth at 2.5 per cent for the 2013 calendar year, down from the 3 per cent predicted in April.
For calendar 2014, the IMF predicts Australian growth at 2.8 per cent, rather than 3.3 per cent.
The IMF report also downgrades growth around the globe, including for Australia's major trading partner China.
"Worryingly, the IMF forecasts Australia's unemployment rate to rise from 5.6 per cent in 2013 to 6.0 per cent in 2014," Mr Hockey said.
"The downside risks documented in the World Economic Outlook confirms significant risks to the Australian budget that will need to be appropriately managed by the Government."
Dr Leigh said the major concern was the possible damage to the US economy from the shutdown of government.
"Pure politics could cause the world's largest economy to default which would almost certainly send the United States into recession and that deadline is now eight days away," he said,
“Any increase in unemployment is concerning and certainly I would be calling on the Coalition to re-think their plans to reduce the size of the Canberra public service.
The Government says it will reduce the APS by 12,000 jobs nationwide over three years through natural attrition.
Edition 383, 15 October 2013