Prime Minister Kevin Rudd has warned that economic growth and job security could be in jeopardy as the global financial crisis entered a ``new and dangerous'' phase.

As he equated the current financial turmoil to a national security crisis, Mr Rudd today signalled the jobless rate for next year was likely to be higher than originally forecast in the May budget.

While Australia remained in better economic shape than many of its contemporaries, Mr Rudd said there would be challenges.

``Australia is better positioned than practically every other country in the world to see its way through this crisis,'' he told reporters.

''(But) this global financial crisis has entered a new and dangerous phase with real consequences for growth, for jobs and therefore for the future.
``We are in the economic equivalent of a rolling national security crisis.

``The challenges are great but the government has set a strong course of economic policy to see Australia through this economic storm.''

In the budget, the government forecast a jobless rate of 4.75% by June next year but that prediction was made prior to the global financial crisis.

``Given the developments in global financial markets and what has been a really turbulent couple of weeks, as night follows day there's a roll-on impact in terms of the real economy and jobs,'' Mr Rudd said.

``So, unemployment is likely to be higher. That's just levelling with people ... It's likely to be higher than has been projected. We don't have numbers on that.''

The prime minister hinted the government was preparing to use its $22 billion budget surplus to underpin economic growth.

``The core discipline in the budget was to put aside a substantial surplus to meet the contingencies of the future,'' Mr Rudd said.

``It's good to have a surplus like that as a buffer for the future. Well, the future is here.

``The question now is how to most intelligently use our surplus to maintain positive growth in the economy.

``We are examining all measures necessary to maintain positive growth in Australia into the future.''

Treasurer Wayne Swan, who is in the United States to represent Australia in discussions about the financial crisis, said there was ``no doubt'' recent events would hit growth.

``It is too early to tell by how much,'' he told ABC Television.

The budget forecast growth of 2.75% this financial year, while a recent report by the International Monetary Fund (IMF) predicted the Australian economy would grow by 2.5% in 2008 and 2.2% in 2009.

The federal government is planning to review all spending in light of the international financial turmoil.

Mr Swan believes the government's election commitments are affordable but says it's prudent, nonetheless, to re-examine them.

``In a situation like this we will put everything on the table because our bottom line is responsible economic management,'' he said.

``But all of our promises were affordable and I believe that we have implemented them in line with our election commitments.

``But any prudent government will look at our current situation, assess what we do next given the global shock, then announce those decisions in good time.''

AAP