Australia's Treasurer Joe Hockey holds a news conference after a meeting of G-20 finance ministers and central bank governors during the IMF-World Bank annual meetings in Washington October 10, 2014.
IN PHOTO: Australia's Treasurer Joe Hockey holds a news conference after a meeting of G-20 finance ministers and central bank governors during the IMF-World Bank annual meetings in Washington October 10, 2014. REUTERS/Jonathan Ernst (UNITED STATES - Tags: POLITICS BUSINESS)
Australia's Treasurer Joe Hockey holds a news conference after a meeting of G-20 finance ministers and central bank governors during the IMF-World Bank annual meetings in Washington October 10, 2014. REUTERS/Jonathan Ernst (UNITED STATES - Tags: POLITICS BUSINESS)

In his Sunday announcement of Cabinet reshuffle, Prime Minister Tony Abbott said the changes are geared towards making the jobs and families a top priority in the coming year, 2015.

Yet, a few days ago, in his Mid-Year Economic and Fiscal Outlook report, Treasurer Joe Hockey said that unemployment would likely reach a 12-year high of 6.5 percent, up from the current 6.3 percent. Such a high unemployment rate was last registered in 2002.

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He explained, quoted by Probonoaustralia, "The fall in the participation rate reflects both demographic factors as the first of the baby-boomer generation reach retirement age and a 'discouraged worker' effect, with some younger workers opting out of the difficult search for work in the non-resources sectors of the economy."

The gloomy outlook likewise applies on wage growth, which was revised down to 2.75 percent through the year to the 2nd quarters of 2014 and 2015, Hockey said.

But Hockey insisted that 2015 would still be a better year than the outgoing year due to lower energy cost, lower local currency and continued record-low interest rate expected to spur stronger economic growth.

Moreover, he said that large investments in new and upgraded roads, transport and business infrastructure would boost the Aussie economy's productive capacity.

Hockey also expects the new trade deals with China, South Korea and Japan to result in broader and deeper market access to these Asian economic giants, especially for small businesses in Australia.