South Australia records lowest employment rate in the nation for February

SA’s unemployment rate has dropped to a record low figure – the best result in Australia – as the national figure also dived, dashing hopes of an imminent cut to interest rates.

South Australia’s unemployment rate has dropped to a record 3.2 per cent – the lowest of any state or territory in the nation.

Figures released by the Australian Bureau of Statistics on Thursday showed SA’s seasonally adjusted February rate fell 0.8 points from January.

Treasurer Stephen Mullighan said the result was “a remarkable achievement for the state’s economy”.

“Not only have we recorded the lowest unemployment rate ever in SA, it’s also the first time SA has recorded the lowest unemployment rate in the nation,” he said.

“I think there is a real sense of confidence and optimism throughout the economy.”

Mr Mullighan partly attributed the boost to investment in the defence and renewable energy sectors.

“There’s a real sense of buzz about our state and it’s really pleasing to see that translate into such great figures today,” he said.

Treasurer Stephen Mullighan says the fall in the jobless rates is “remarkable”. Picture: NCA NewsWire / Kelly Barnes

However, opposition treasury spokesman Matt Cowdrey said the rise in employment was to be expected.

“This uptick is welcomed but comes as no surprise because during this period every year we see a huge increase in casual work because of the Fringe and other events,” he said.

Population data also released Thursday showed the number of departures from the state was greater than the number of arrivals for the year ending September 30 2023.

The data showed that 25,880 people left for interstate, while only 24,873 arrived – a net loss of 1007.

Nationally, the unemployment rate dropped to 3.7 per cent, down from 4.1 per cent the month prior, and far short of a 4 per cent reading economists had predicted following an uptick in job losses over the summer months.

Australia’s economy added a blockbuster 116,500 jobs in February, the Australian Bureau of Statistics reported on Thursday, far outstripping expectations of an increase of 40,000.

The unexpected jobs gain was fuelled by an increase in both full-time and part-time positions, up 78,200 and 38,300, respectively.

Oxford Economics lead economist Ben Udy said the recovery in employment clearly challenge the view that monetary policy was providing enough of a drag on the economy to bring down wage growth and inflation.

“The RBA will surely be watching the labour market data closely from here to see if the loosening in the labour market resumes in the months ahead.”

After keeping the cash rate on hold at 4.35 per cent earlier this week, RBA governor Michele Bullock said the central bank was keeping a close eye on measures of the jobs market, but was not targeting a certain jobless rate before it lowered interest rates.

“I think the unemployment rate is something that is mechanically going to rise as the economy slows,” governor Bullock said.

The Reserve Bank’s own forecasts predict the unemployment rate will rise only gradually, reaching 4.2 per cent by June, and 4.3 per cent by year’s end.