AUSTRALIA

Unemployment Is Highest Ever: The unemployment rate rose to 11.1% in June, the highest Australia has ever recorded. The figure, which exceeded the most pessimistic market estimate, forced a quick policy shift for the governing Labor Party. Barely an hour after the figures were made public, a somber John Dawkins, the federal treasurer, announced that the government would look at fiscal measures to help the unemployed get jobs. In the past five years, the government’s economy policy has focused on keeping a tight rein on spending. It has dealt with the recession and unemployment largely through easing interest rates. Last Wednesday, the official interest rate was cut from 6.5% to 5.75%, the 13th cut since it peaked at 18% in January, 1990. But the government is now acknowledging that easing monetary policy has done little to stimulate the flagging economy. On Wednesday, Dawkins urged Australians to spend the savings they get from the interest rate cut.