Unemployment Rate to Rise Because of Mining Bust

Industry analysts believe that the jobless rate would increase as the mining boom is easing up.

Although no one is expecting a recession, economists said economic growth would average some 2.5 percent. The figure is lower than the average 3.25 percent.

The BusinessDay conducted an economic survey to find out what economists think about the economy. Half of the respondents said the economy would slightly improve by the second semester of 2013 but weaker conditions mean more people would be out of a job.

The panel also said that jobless rate my reach 5.7 percent by December 2013. This is higher than the December 2012 rate of 5.4 percent.

AMP chief economist Shane Oliver said people might find it harder to change jobs and more layoffs are likely to happen. Only three of the panelists said the federal government can deliver a budget surplus.

Charles Darwin University economics professor Bill Mitchell said the government has already withdrawn its surplus prediction.

And when the mining boom has finally peaked, the challenge for the rest of the industries is whether they can fill the gap especially on the number of generated hobs.