What was the unemployment rate in Australia during the peak year of the recession in 1992-3?

The correct response indicates that during the peak of the recession in Australia in 1992-1993, the unemployment rate reached 10.7%. This period was marked by a significant economic downturn, which was one of the most severe recessions Australia experienced in the post-war era. Factors contributing to this high unemployment rate included a contraction in economic activity, a reduction in consumer spending, and large-scale layoffs and business closures. The recession affected various sectors, leading to job losses across the economy.

In the context of the other available options, the figures before and after this peak year reflect more stable economic conditions. For instance, 5.6% and 4% would indicate a strong labor market environment, which was not the case during the recession. A rate of 8.5% does not align with the historical data for the peak recession year either, as it falls below the actual peak measurements documented. Thus, the 10.7% figure encapsulates the dire employment conditions that characterized that time in Australia’s economic history.