South Australian jobless rate for July balloons to 6.9 per cent, highest in Australia
SA’s unemployment rate has jumped by 0.9 percentage points to 6.9 per cent for July, the highest nationally, with Treasurer Rob Lucas saying the Government accepts a share of the responsibility.
- June’s jobless rate rises to 5.9 per cent
- May’s unemployment rate drops to 5.7 per cent
- April’s jobless rate rises to 6.1 per cent
- March’s unemployment rate hits 5.9 per cent
South Australians are keen to work but the jobless rate has soared and lumped the state with the unwanted title of worst in the nation.
There were 62,900 people looking for a job in SA last month, 8200 more than the month before. Among them was 53-year-old Scott Grindle, a construction industry safety adviser who had been actively looking for work for about three months.
Mr Grindle will begin casual scaffolding work next week, but said finding a job in his desired field had been “really tough”. “I’m one of many people who are experienced but seen to be too old to do hard, manual tasks,” he said.
The state’s unemployment rate has risen to 6.9 per cent, seasonally adjusted, a jump of 0.9 percentage points from June, the Australian Bureau of Statistics reported yesterday.
It was the highest rate since the 7 per cent of May 2017.
The increase came as more people entered the workforce with the proportion of the adult population in work or looking for work - the participation rate - at its highest level since May 2013.
It came as Australian stocks tumbled on Thursday, with investor selling hard and $44bn wiped from the stock market after a heavy sell-off on Wall St overnight, sparked by global recession fears.
Energy and tech shares had the largest losses, sliding 4.59 per cent and 3.55 per cent, respectively.
The number of South Australians in work is at 853,200, while the number looking for work but unable to find a job has now reached 62,900, an increase of 9300 people.
Across the nation, at least 41,100 found jobs during July.
Treasurer Rob Lucas said he was disappointed by the 6.9 per cent figure.
“The Government accepts its share of responsibility in terms of what happens in the economy,” he said. “We’re in charge of the economic levers.
“We don’t control or dictate everything. We can invest in terms of public infrastructure, we can invest in terms of trying to lower the cost of doing business — but ultimately there will also be national and even international factors.
“There’s the trade war — those of you who invest in shares will have seen a big drop in the All Ordinaries today.
“The jobs’ figures reinforce the importance of the Government’s long-term economic reform agenda to drive positive jobs growth.
“That’s why we’re forging ahead with our sound economic policies, including payroll tax cuts, millions in land tax and ESL bill reductions and a significant $11.9 billion infrastructure program creating a pipeline of jobs.”
Master Builders Association of SA chief executive, Ian Markos, said this was a wake-up call for SA and a clear indicator that risky changes to land tax was the last thing needed now.
“It’s the enterprise of the private sector that creates jobs and a place where people want to live,” Mr Markos said.
“The Marshall Government needs to take the axe to all the red and green tape that is hurting affordability, preventing investment and costing jobs.”
Mr Lucas said linking the land-tax changes to unemployment was “a very long bow” because there was no legislation yet, let alone an effect on the ground.
He also disputed the opinion of new Liberal Senator Alex Antic on land tax.
Senator Antic has written to Premier Steven Marshall warning the economy would be put at risk by the changes.
“With the benefit of the federal election campaign fresh in our minds, it strikes me as unconscionable that our party would seek to prosecute an argument for an increase in land tax,” Senator Antic said.
However, Mr Lucas said even with the changes the total raised in land tax would fall, not increase.
He and Mr Marshall were working to bring forward reductions in the top rate of land tax.
The government was bringing forward roadwork projects — especially in regional areas — to help fill the employment gap until the next phase of the North-South Corridor and defence and space sector jobs kick in.
Mr Lucas rejected suggestions it was a bad look for politicians’ pay rises to be made public just as unemployment worsened.
“I don’t think MPs should apologise at all for being paid roughly the same increase as everybody else is getting,” he said, referring to an average 2.3 per cent wage increase nationally last financial year.
Opposition treasury spokesman Stephen Mullighan has accused the Government’s budget, which increased taxes, as being a “disaster” for the state’s economy.
“After smashing household confidence with record increases in fees and charges, business is now concerned about uncertainty surrounding land tax changes,” Mr Mullighan said.
“Steven Marshall promised more jobs, yet South Australia now has the highest unemployment rate in the nation.”
