Unemployment 'a kick in the guts'

Unemployment in Australia is forecast to reach 7% by the end of the year. It is currently 6.2% - that is more than 765,000 people officially without work.

Job creation is expected to be a key pillar in the government's annual budget statement on Tuesday.

Brendan McCleod, who worked in a mining manufacturing company in the NSW Hunter Valley, thought his job was safe but was made unemployed last week.

Interview by Phil Mercer.