Nearly 600,000 Australians lose jobs just as virus lockdown bites

Almost 600,000 Australians lost their jobs mainly because the virus shutdown took hold in April, the steepest monthly drop since records started out more than 40 years back, data showed Thursday.

The Australian Bureau of Statistics (ABS) said 100,000 persons filed for unemployment benefits, while a further 500,000 left the workforce altogether.

Prime Minister Scott Morrison called the figures "terribly shocking", with the ABS reporting the underutilization rate -- which combines unemployment and underemployment -- reached an archive most of 19.9 percent in April.

The ABS said 2.7 million persons -- or one in five Australian employees -- either still left the workforce or experienced their work hours reduced as the country documented an "unprecedented fall" in the workforce participation rate to 63.5 percent. The drop in the participation rate intended unemployment rose one percentage point to 6.1 percent, well short of forecasts greater than eight percent.

Simply 12.4 million Australians now have jobs after the steepest monthly fall in employment because the ABS commenced recording monthly data in 1978.

Morrison warned Australians to brace for more challenging economic news found in the months ahead, adding: "A very tough day. Terribly shocking, although not unanticipated.

"We knew there will be hard news as the pandemic wreaks an impact on Australia since it is normally on countries all over the world."

The Treasury has forecast the unemployment rate will reach ten percent in the June quarter.

Morrison said the number of people now covered by Jobkeeper, a A$1,500-a-fortnight wage subsidy program paid to staff via their employers, now exceeds six million.

Australia has been probably the most successful countries in containing COVID-19, with fewer than 7,000 confirmed cases and 100 deaths out of a good population of 25 million.

But restrictions in travel, public gatherings and retail businesses experienced a devastating effect on the economy, slashing some A$4 billion ($2.5 billion) per week from economic activity.

Parts of the country experience begun relaxing the restrictions, with some cafes, pubs and restaurants opening to compact groups from Friday.