Mail Online 20 Sep, 2020 01:30 am

How Australia's true unemployment rate is much higher than the statistics say

How Australia's true unemployment rate is much higher than the statistics say
Australia's true unemployment is likely to be in the double digits and at the highest rate since the 1930s Great Depression. Not even Prime Minister Scott Morrison disputes this.

Despite the creation of 111,000 new jobs in August, good news during an economic crisis can be very deceptive, with the true unemployment rate likely to be at the highest levels since the 1930s Great Depression.Elections during an economic crisis March 1993: Paul Keating's Labor Party wins a fifth consecutive term despite Australia having an unemployment rate of 10.9 per cent during the long aftermath of the 1991 recession March 1983: Malcolm Fraser's Coalition government loses in a landslide to Labor's Bob Hawke amid a year-long recession and drought, with the jobless rate at ten per cent December 1975: Liberal caretaker PM Fraser wins a landslide victory over dismissed Labor prime minister Gough Whitlam during a recession December 1972: Liberal PM Billy McMahon loses to Whitlam, ending 23 years of Coalition rule nine months after a recession December 1961: Australia's longest-serving prime minister Robert Menzies, the founder of the Liberal Party, is re-elected with a one-seat majority three months after a recession and during a credit squeeze When workers relying on $1,500 a fortnight JobKeeper wage subsidies were factored in, Treasury calculated Australia had an effective unemployment rate of 14 per cent.Mr Morrison on Thursday downplayed the surprise drop in the official unemployment rate and admitted the effective or true jobless rate was likely to be in the double figures.

'I've always said that the unemployment figure we should be watching is not the measured rate of unemployment,' he said.'The measured rate of unemployment is one thing, but we know it is much higher than that.

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