Prime Minister Kevin Rudd has been given high praise by the Organisation for Economic Co-Operation and Development (OECD) for helping to keep unemployment down during the financial crisis.
According an OECD report, the Federal Government’s stimulus package helped to project jobs, with the current unemployment rate of 5.8 percent well below the OECD average of 8.5 percent. The employment outlook report claimed 150,000 to 200,000 Australian jobs could have been lost in 2009 if it wasn’t for stimulus measures.
“Australia’s fiscal stimulus package seems to have had a strong effect in cushioning the decline in employment caused by the global economic downturn,” the report said.
The OECD said employment responded more to fiscal stimuli “in countries like Australia” where local production meets a relatively larger proportion of domestic demand.