Australia is expected to have the second worst unemployment rate in the Asia-Pacific region, according to the International Monetary Fund (IMF) world economic outlook report. The IMF predicts a jobless rate of 6.2 percent in 2014 and 6.1 percent in 2015.

The report said the financial organisation expects the Philippines to fare worst with high unemployment rates of 6.9 percent in 2014 and 6.8 percent in 2015. IMF reported that Australia's labour force has become volatile in the last few months with the jobless rate moving between 6.4 and 6.1 percent. According to economists, they expect Australia to show a 6.2 percent jobless rate for the month of September.

The IMF's latest report featured a modest outlook for the country's growth forecasts. Australia's economy is expected to grow 2.8 percent in 2014 and 2.9 percent in 2015. However, the figures remain below the country's long-term average rate of 3.25 percent which is the level needed to boost employment rates. The IMF predicts Australia will gain export investments to help offset the slowdown of the mining boom.

IMF chief economist Olivier Blanchard said the world economy in the midst of a "balancing act" as the IMF lowered its forecast for global growth to 3.3 percent in 2014 and 3.8 percent in 2015. Blanchard said countries should deal with the lagging effects of the global financial crisis which includes debt and unemployment.

Australia was ranked in the category with a long period of low interest rates. Blanchard believes this is one of the key risks in the IMF's assessment. Geopolitical risks have also grown in significance but the Ukraine crisis as well as the conflict in the Middle East had yet to affect oil prices.

Bloomberg reports that Australia's economy is expected to change as commodity exports to China slow down since the Asian country is Australia's number 1 trading partner. Economic data shows exports to China had declined 4 percent in the July quarter due to China's economic slowdown.

Mining investments in Australia have slowed to a crawl. The industry accounted for 9 percent of the country's gross domestic product in 2012, reports said. According to the Reserve Bank of Australia, the country will also see a fall of 3 to 4 percent GDP in the next few years.