24 Aug 2011

Another 100,000 job losses forecast

11:16 am on 24 August 2011

New forecasts from Bank of America Merrill Lynch say another 100,000 jobs in Australia could be lost by March next year.

The research also predicts unemployment there could rise from 5.1% to 6% over the next six months.

It says that means the Reserve Bank will have to cut interest rates by November.

The analysts say financial conditions in Australia are now as tight as at any time since the 1990s.

Federal Treasurer Wayne Swan concedes there will be further job losses in the Australian economy. he says there will be "painful adjustments" ahead for some sectors.

Prime Minister Julia Gillard says sections of the economy are under great pressure and some traditional industries will need to change.

On Tuesday, BlueScope Steel announced it would cut 1000 jobs and end steel exports.

The ABC reports the company blamed the yuan, saying the currency was artificially low and meant that importing Chinese steel was cheaper than buying local products.