Global Recession to ‘Batter’ Australian Economy, Swan Says

June 14 (Bloomberg) -- Australian workers will suffer more job losses as the global recession spreads, Treasurer Wayne Swan said.

“The global recession will continue to batter our economy, and like other nations, we need to brace ourselves for more job losses in Australia,” Swan said in an e-mailed statement today. “While we received some good news last week on the housing and confidence front, there is no room for complacency.”

Australian employers fired fewer workers than estimated in May, adding to signs the economy is overcoming the worst global slump since the Great Depression. Home-loan approvals rose in April for a seventh month as the lowest borrowing costs in half a century and government cash handouts bolstered demand among first-time buyers.

To spur domestic demand, the government unveiled plans in May to embark on an unprecedented A$22 billion ($18 billion) program to build schools, roads and railways. The jobless rate rose to 5.7 percent from a revised 5.5 percent last month.

“The government has acted decisively to stimulate the economy and cushion Australians from the worst effects of the global recession, with three phases of stimulus -- cash stimulus payments, shovel-ready projects, and large-scale nation building infrastructure,” Swan said today. “There is no doubt that without this decisive action, unemployment in this country would be much higher.”