While the Reserve Bank of Australia has forecast the unemployment rate to hit 10 per cent in the current quarter and still be at 9 per cent by year's end, Mr Morrison said 850,000 jobs could be restored under the three-stage plan approved by national cabinet to open up the economy.

"Those 850,000 jobs, I'm advised by Treasury, that includes those who may be on JobSeeker or JobKeeper now. People stood down, going back to full employment," the prime minister said.

"It's very much a function of how and when all of those steps are completed. And by July? That's the aspiration."

Treasury estimates that the first step to ease restrictions on restaurants, cafes, shops, playgrounds and libraries will restore 250,000 jobs and generate an extra $3.1 billion a month in activity.

The second step to lift controls on gyms, cinemas,gallaries, caravans and some interstate travel, will add an extra 275,000 jobs and $3 billion a month.

The third step, an easing of restrictions on pubs, clubs, nightclubs, foodcourts, and some international travel, will restore 325,000 jobs and add an extra $3.3 billion a month.

Since the restrictions were imposed to slow the spread of COVID-19, more than one million people have applied for JobSeeker support and 768,000 businesses employing 5 million workers have enrolled in the JobKeeper wage subsidy scheme.

Treasury's estimate about the potential employment impact of the staged opening of the economy appears to stand at odds with the Reserve Bank's outllook.

In its base case for the economy, the RBA expects it will take most of next year for national output to recover to pre-COVID-19 levels.

While social distancing restrictions are gradually being eased, the RBA warns that recovery from the damage caused by the shutdown of significant parts of the economy will be slow.

In its latest update on the economic outlook, the central bank's baseline forecast is for gross domestic product to plunge by 8 per cent in the June quarter and still be down 6 per cent in the second half of the year before a strengthening rebound in the first six months of 2021.

Under this scenario, which assumes that most restrictions except for those on international travel are removed by the end of September, the unemployment rate will hit 10 per cent in June and still be at 9 per cent at the end of the year. It will take two years to come down to 6.5 per cent.

Asked about the apparent discrepancy between the view of Treasury and the RBA, Mr Morrison said: "All I know is the more we open up, the more people go back into jobs and the better off everyone will be. And the numbers will then tell the story."

The central bank warned its forecasts are subject to a high degree of uncertainty, and said there was the chance of a shallower downturn and faster recovery.

"Given the relatively rapid decline in the number of new COVID-19 cases in Australia, it is possible to contemplate an upside scenario where most domestic restrictions on activity are relaxed a little sooner and the economy recovers somewhat faster," the RBA said.

READ MORE:

Under such a scenario, the unemployment rate could return to around 5 per cent by mid-2022 and output could return to pre-crisis levels in the first half of next year.

But it warned any recovery from the downturn would be hampered by a steep fall in household spending and business investment driven by job losses, reduced working hours, low wage growth, a subdued property market and high uncertainty.

The RBA said it had pumped $50 billion into the financial system by the beginning of April through government bond purchases and conditions in the financial markets had significantly improved, allowing it to scale back the size and frequency of its operations.

Much will hinge on the international outlook, which appears dire in the short-term.

The International Monetary Fund reckons the global economy will shrink by 3 per cent this year before rebounding in 2021 to grow by 5.8 per cent.

The IMF warned that the risks of an even deeper downturn are "substantial".

But there are some hopeful signs.

Australia's trade surplus soared to $10.6 billion in March from $3.8 billion the previous month, driven by a record $150 billion of shipments to China.

The result suggests Chinese government efforts to stimulate the world's second largest economy are working.

The RBA said there was a substantial recovery in Chinese industrial production in March and investment in buildings and equipment had picked up

If the giant Asian economy is able to grounds for some optimism.

But even if the global and domestic downturn is not as deep as many fear, the RBA has nonetheless cautioned that the crisis is likely to have a lasting impact.

"It is quite plausible that the current economic disruption will have some long-lasting effects, not only because it will take some time to restore workforces and re-establish businesses, but also because it could affect mindsets and the behaviours of consumers and businesses," the central bank said. "This could result in structural change in the economy."