Volatility From US tariffs, Factor In Rising Australian Unemployment: Treasurer

CANBERRA, July 18 (Bernama-Xinhua) -- Global economic volatility driven by US tariffs is a factor in Australia's rising unemployment, Treasurer Jim Chalmers said on Friday, Xinhua reported.

Chalmers told Australian Broadcasting Corporation (ABC) radio on Friday that the volatility, unpredictability, and uncertainty created by US tariffs have become a "defining and an ongoing feature of the global economy" and that Australia is not immune.

He said that the federal government has received feedback from business leaders and economists that US trade policy has affected local decisions on whether to hire workers or not.

"I think certainly people see this uncertainty and unpredictability as a new normal. That requires us to have a shift in our thinking," he said.

Official data released on Thursday by the Australian Bureau of Statistics revealed that Australia's unemployment rate rose from 4.1 per cent in May to 4.3 per cent in June, the highest figure since November 2021.

Chalmers said on Friday that the uptick in unemployment was unwelcome but unsurprising, with the government forecasting it will rise further but remain below five per cent.

The treasurer was speaking from South Africa, where he is attending the G20 Finance Ministers and Central Bank Governors meetings in Durban.

He said that there has "certainly" been a sense in bilateral discussions and larger meetings that the US tariffs are unwarranted, unnecessary, and an act of economic self-harm.  

-- BERNAMA-XINHUA