Unemployment rate in South Australia drops to 5.3 per cent, but still highest in country

The jobless rate in South Australia has improved to levels not seen since 2012 – but is still the highest in the nation.

South Australia has recorded the nation’s worst unemployment rate for the second consecutive month, despite dropping to levels not seen since 2012.

In the latest figures released by the Australian Bureau of Statistics on Thursday, SA’s unemployment rate sits at 5.3 per cent, down from 5.8 per cent recorded in the previous month.

The last time SA had a jobless rate as low as 5.3 per cent was in November 2012.

SA’s current rate is a massive improvement from the depths of the Covid-19 recession last year. In June 2020, the state’s jobless rate was 8.7 per cent.

NSW, Queensland and Western Australia – all at 5.1 per cent – had the next worst unemployment rates in Thursday’s figures, while Victoria, at 4.4 per cent, had the best jobless rate in the country.

The national unemployment rate fell to 4.9 per cent – the country’s eighth consecutive monthly fall and the lowest rate since December 2010.

The improvement could spark the beginning of wage rises across the country.

Prior to handing down the 2021 federal budget in May, Treasurer Josh Frydenberg set an unemployment target of below 5 per cent, ruling out any wage rises until this goal was achieved.

But wage growth in SA could lag behind if it can’t get the unemployment rate below 5 per cent.

Mr Frydernberg also flagged budget repair measures would start if the rate stayed below 5 per cent for a sustained period of time.

The latest ABS figures cover the month of June, so do not take into account the current NSW lockdown.

ABS figures released in May showed SA’s unemployment rate had dropped from 6.3 per cent to 5.7 per cent.

This improvement allowed the state to shed its unwanted mantle of having the worst jobless rate in the country, but it was reclaimed just a month later when the rate increased slightly to 5.8 per cent.

Skills and Innovation Minister David Pisoni said 22,200 jobs had been created in SA since the beginning of the year.

“There are also a record number of job vacancies in SA with 21,300 positions vacant,” Mr Pisoni said.

“South Australia’s growing prosperity is underpinned by our exceptionally strong performance in handling both the health and economic threats posed by Covid-19.”

Mr Pisoni said a $17.9bn infrastructure investment pipeline and a $4bn Covid-19 stimulus would continue creating new jobs.

An independent report by Roy Morgan earlier this week labelled SA “top of the class” in the management of Covid-19.

Deputy Opposition leader Susan Close blasted the government over the latest jobless figures, which showed SA’s unemployment rate was 0.9 per cent worse than Victoria, which spent 112 days in lockdown last year.

A total of 866,600 South Australians were employed in June, down from 871,100 in May.

“Losing more than 4,000 jobs in one month is a massive blow to our economy, but it’s more than just numbers, this is thousands of families facing a significant loss of income,” Ms Close said.

“Under the Marshall Liberal government, South Australia continues to trail the rest of Australia when it comes to jobs.”

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