South Australia’s unemployment rate hit 8.8 per cent in June, highest in nation, despite massive 11,400 new jobs being created
SA’s jobless rate has leapt to 8.8 per cent, the highest in the nation – even though a massive 11,400 new jobs were created in a month as coronavirus lockdowns lift.
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- Extend JobKeeper or risk wipe-out, says Business SA
- Australia’s national jobless rate rises slightly to 7.4 per cent
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South Australia’s unemployment rate has spiked to the highest in the nation, despite a massive 11,400 new jobs being created in a month as coronavirus lockdowns lift.
In a complex set of unemployment figures released on Thursday, SA’s seasonally adjusted unemployment rate leapt from 7.9 per cent in May to 8.8 per cent in June. The national rate rose only slightly from 7.1 per cent to 7.4 per cent.
The alarming rise means SA’s official unemployment rate is the highest since 1999, with experts voicing concerns that the full toll is masked by unprecedented support programs such as JobKeeper.
Women fared particularly poorly in SA’s jobless spike.
There are now 817,300 people employed in SA. That is down from 854,400 in March when the lockdowns started.
While more people in SA have jobs since last month’s figures were released, that improvement is swamped by 20,000 who started looking for work.
The headline unemployment figure, measures how many people have jobs against how many want one.
Across the country, the number of people with jobs rose by 210,800 in June. However, the total number of unemployed in Australia rose at the same time, by 69,300.
Innovation and Skills Minister David Pisoni said the pandemic remained “the greatest economic challenge of our time”.
“We are continuing to ... look to get as many infrastructure projects as possible underway as quickly as possible, as well as deliver hip-pocket relief through cheaper water bills,” Mr Pisoni said.
Opposition Leader Peter Malinauskas said the government was lagging on the economic recovery plan after SA excelled in the health effort.
“It didn’t have to be this bad,” Mr Malinauskas said.
“The Marshall Liberal government needs to deliver a stimulus package in line with other states to get more South Australians back in jobs.”
Australian Industrial Transformation Institute director John Spoehr said containing COVID-19 was key to firing the economy back up.
“Employment growth will be strong but not sufficient to absorb the very large number of people who come off JobKeeper at the end of September,” he said. “Expect the unemployment rate to get worse before it gets better.”
Motor mechanic James Whitehead lost his job in the peak of the pandemic in March, and was working as a casual for four months. He has now secured a job at Auto Masters Munno Para.
“It’s definitely better to have something locked down,” he said. “To have set hours, a contract and ... full-time perks.”
Extend JobKeeper until the end of the year: Business SA
Businesses could be “wiped out” unless JobKeeper payments are maintained past the current September cut-off date, Business SA says.
Its chief executive Martin Haese has written to federal Treasurer Josh Frydenberg and Premier Steven Marshall to suggest a more targeted JobKeeper scheme – left in place until at least December 31 – to help struggling businesses survive.
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