South Australia’s unemployment rate the lowest in a year

New jobs figures are being hailed as part of a “magical mix” for SA’s economy as it tries to emerge from the COVID crisis.

South Australia’s unemployment rate is at its lowest level in more than a year, new figures show.

ABS figures released on Thursday show SA’s seasonally-adjusted unemployment rate dropped by 0.8 per cent to 6.2 per cent between October and November, below the national average of 6.8 per cent.

It is the lowest unemployment rate of all the states.

However, it comes despite the fact the state has lost 900 people from the employed list and about 10,000 fewer South Australians are looking for work.

The state’s unemployment rate rose as high as 8.8 per cent in June

The last time it fell this low was in November last year when it dipped to 6.1 per cent.

Skills Minister David Pisoni said the 6.2 per cent unemployment rate was the first time in more than a decade that SA had the country’s lowest unemployment rate.

Innovation and Skills David Pisoni. Picture: Tait Schmaal

“These numbers reflect the growing confidence in the South Australian economy,” he said.

“South Australia has had the strongest rebound in full-time employment of the states and is the only state to have more people in full-time employment than at the start of the year.

“The fact the number of South Australians in jobs has increased by 44,500 since the first shock of COVID-19 in May is a testimony to the economic management of the Marshall Government during a very difficult period.”

Industry heavyweights have welcomed the figures as a step in the right direction.

But the Opposition has pointed out the figure can be attributed solely to a drop in the number of people looking for work, referred to as the participation rate.

The statistics show that in November there were 852,900 employed people in South Australia – down on October, when there were 853,800.

The numbers are a jump from May when there were 808,400 employed people but still almost 3900 fewer than in March when there were 856,800 employed people in the state.

Property Council of Australia SA Executive Director Daniel Gannon welcomed the figures.

“South Australia’s low jobless rate combined with high levels of business confidence is a magical mix for the state’s economy.,” he said.

“This year has been challenging for business and property owners alike, but with the right policy settings and government stimulus, South Australia can bounce out of this pandemic stronger.

“There’s no better time to market South Australia to investors interstate and abroad to ensure we capitalise on our comparatively healthy, safe and resilient economy.”

Master Builders Association of SA spokesman Will Frogley said the building and construction industry had helped to keep South Australians in jobs.

“In recent years our unemployment rate has consistently been one of the nation’s highest, so these figures are a very welcome change,” he said.

“Building and renovating homes have a massive multiplier effect – they are two of the very best things you can do for job creation and are key reasons for the large drop in the unemployment rate.

“Residential building has been turbocharged by the HomeBuilder scheme and is without doubt one of the top performers in South Australia’s economy right now.

Opposition Treasury spokesman Stephen Mullighan said while the headline seems good, the story behind it is troubling.

“Jobs were lost over the last month, there are nearly 4,000 less people in work compared to March, with fewer people looking for work,” he said.

“The combination of job keeper reducing further in the new year, and the massive hit to our export industries from the China tariffs mean further pain for workers and the state’s economy in the new year.”

The figures were released ahead of Federal Treasurer Josh Frydenberg’s mid-year budget update to be unveiled this afternoon.