QLD: Queensland's jobless rate set to rise

AAP General News (Australia)
12-08-2008
QLD: Queensland's jobless rate set to rise

BRISBANE, Dec 8 AAP - Unemployment in Queensland is set to rise, the state government
has confirmed as it prepares to release its mini-budget.

Treasurer Andrew Fraser is expected to announce a deficit in Tuesday's mini-budget,
instead of the $809 million operating surplus forecast for 2008/09 in the June budget,
as the slowing housing market and economic downturn slash revenues.

Mr Fraser said on Monday the Queensland economy would be impacted by the global economic
crisis and unemployment would be a key policy focus for 2009.

The government had forecast the unemployment rate to remain at a 34-year low of 3.75
per cent in the budget, but Mr Fraser said it was now expected to rise to 4.25 per cent
in 2008/09.

"The start of 2009 will be a very difficult time for economies around the globe and
we don't expect to escape that challenge," Mr Fraser told ABC Radio on Monday.

"The big policy task for 2009 will be fighting off unemployment.

"The forecast now is that unemployment will rise over the financial year to 4.25 per cent.

"That's still well below the national forecast of five per cent."

To combat the loss of jobs, Mr Fraser said $3 million would be given to Lifeline to
provide financial counselling and an assistance fund to retrain workers who lose their
jobs would be doubled to $10 million.

A further $20 million will be spent on ensuring industrial apprentices and trainees
who face being laid off can complete their training plus $25 million on creating jobs
in mining communities.

At least $200 million in cuts to public service spending will be made in the mini-budget.

Mr Fraser has also guaranteed the $17 billion capital works program would be quarantined
from any cuts.

AAP peb/pjo/mn/it/mn

KEYWORD: BUDGETQLD UPDATE

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