Treasurer Wayne Swan is bracing for a higher unemployment number when labour market figures are released this morning.
Economists are expecting the jobless rate for April to hit 5.9 per cent for the first time since 2003.
In March, the jobless rate jumped half a percentage point to 5.7 per cent.
Mr Swan said the Australian Bureau of Statistics data due today were more likely to show a rise in unemployment.
"I hope they don't go up today but I think that the slowing of growth will be reflected in the figures that we see in the period ahead," Mr Swan told ABC Radio.
"I don't think there's any doubt the slowing of growth and the sharp global contraction is leading to high unemployment."
But Mr Swan said unemployment in Australia was likely to be lower than other parts of the world.
"What we do know is that economic stimulus has cushioned the impact of that savage global contraction and the consequence of that is unemployment here is going to be much lower than it will be in many other parts of the world," he said.
When asked about debt overload, the treasurer said spending more money was the responsible approach during a sharp economic downturn.
"The responsible thing to do in the current environment ... is to borrow and to borrow in the face of this big crash in government revenues to support the economy," he said.
"It's a complex situation but what we have to do at the moment is to put in place economic stimulus and in the longer term put in place the savings that are required so we can make room for the vital investments for the future that will enable us to take advantage of the opportunities that come when global growth returns."
The Rudd Government said its first $10 billion stimulus package would create 75,000, but in the face of job losses, Mr Swan said the stimulus programs had created work in the retail sector.
"There are jobs being created and jobs being supported across the board through economic stimulus, it is absolutely undeniable," Mr Swan said.
AAP
