South Australia retains unwanted mantle of unemployment capital as jobless figures worsen

South Australia has recorded the highest jump in unemployment in the nation. But a less volatile measure has the state sitting where it was a month before.

• Thousands flock to South Australia Centrelink offices after pubs, clubs and restaurants effectively shut down
• PM unveils $130 billion Job Keeper program
• Thousands of SA businesses sign of for Job Keeper program

South Australia has seen the highest rise in the unemployment rate in the nation from 5.8 per cent to 6.2 per cent before the full impact of the coronavirus is to be recorded.

South Australia’s unemployment rate again leads the nation, as we brace for further impacts from a coronavirus-sparked economic slowdown.

Nationally the 5.2 per cent unemployment rate was better than what Federal Treasury official expected with concerns it could raise to 5.5 per cent for the March quarter.

With the global and national economies predicted for very tough times in light of the coronavirus pandemic, SA recorded a 6.2 per cent seasonally adjusted unemployment rate in February.

The figures cover a period before the height of the coronavirus concerns, and predate state and federal stimulus packages.

Figures were taken before Prime Minster Scott Morrison announced a $130 billion Job Keeper program.

They also predate the strictest restrictions, announced by the Federal Government on March 23, that reduced pubs, clubs and restaurants to take away sparking huge line ups outside Centrelink offices across the nation including South Australia.

But the potential effects of the coronavirus were already being felt across the country.

A number of states had already recorded deaths, and high profile positive tests including Home Affairs Minister Peter Dutton and Hollywood star Tom Hanks were widely publicised.

ABS Chief Economist Bruce Hockman said today’s data shows some small early impact from COVID-19 on the Australian labour market in early March, but any impact from the major COVID-19 related actions will be evident in the April data.

“Given the expected unseasonal change in key labour market indicators in the current COVID-19 context, the ABS will increase the focus on seasonally adjusted over trend data estimates for April and subsequent months,” Mr Hockman said.

The latest figures released on Thursday morning showed the seasonally adjusted number of SA rose 0.4 per cent.

On the less volatile trend measure, SA’s rate has remained stable at 6.0 per cent.

NSW continues to lead the nation by a street, with 4.8 per cent seasonally-adjusted unemployment.

Second highest behind SA is Queensland on 5.7 per cent.

The seasonally adjusted participation rate increased by 0.5 points in South Australia.

On trend terms, 852,000 people are employed in SA, which marks a 3700 reduction in jobs from a record high in June last year.

The seasonally-adjusted unemployment rate was 5.6 per cent when Premier Steven Marshall won a drought-breaking election in March 2018. It is now 0.6 per cent higher.

State Minister for Innovation and Skills David Pisoni said while today’s figures did not reflect the full impact of the pandemic there was “no doubt” state and federal stimulus measures would minimise the impacts of the pandemic on the economy.

“Small business is the backbone of the South Australian economy and is a huge employer and that’s why we will do everything in our power to support as many businesses as possible to get through to the other side, and in turn, preserve as many jobs as possible”.

Mr Pisoni said SA had seen 3500 people employed in March, seasonably-adjusted, 70 per cent of which were full time positions.