Sensational turnaround as Mackay has the lowest jobless rate in state

AFTER struggling with the impact of the downturn in the mining boom, Mackay’s jobless rate has dropped to the lowest in the state.

Mackay waitress Jade Vaughan, 19 works at Our Kitchen cafe and has never had a problem getting a job in Mackay. Picture: Lachie Millard

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MACKAY is getting back to its bustling best, with the lowest levels of unemployment in the state.

“We’ve had a sensational turnaround, starting in mid-2016,’’ Mayor Greg Williamson said.

After struggling with the impact of the downturn in the mining boom, the remarkable resurgence has seen more than 10,000 jobs added over the past year.

Regional trend analysis by Conus Consultancy Services shows that jobs in Mackay have grown 2½ times faster than Queensland as a whole.

Unemployment has fallen to 3.9 per cent — well below the state average of 6 per cent and under the 4 per cent level regarded as full employment.

“The vibe is fantastic,’’ Mr Williamson said. “Business confidence is high, the positivity is back in town.’’

Unemployment in the region is at its lowest in more than three years and half the rate it hit in mid-2015.

Mr Williamson said with the international spot price for coal at about $190 per tonne, Mackay’s resources industry support sector — the country’s biggest — was back in swing. “So much so that there are 500 positions we can’t find people for.

“That all trickles down to small businesses.’’

Jade Vaughan, 19, who for 12 months has been working at popular cafe Our Kitchen in Wood St, Mackay, is one of thousands of young locals taking advantage of the upswing in the local economy.

“It was fairly easy for me to get this job because I had worked on the Gold Coast in hospitality and had the experience,” she said. “But I have noticed a real increase in business here since around May of this year.”

NE Food, which owns the cafe as well as other venues in the Mackay hospitality industry, is planning further expansions in town. “We are hiring people all the time,” Jade said.

The return of the good times are attracting people back to town.

“We had hundreds and hundreds of houses empty after the downturn but real estate agents say the vacancy rate is now only about 3 per cent,’’ the mayor said.

That has stimulated the development and building industry. The Conus data shows construction accounted for 3200 of the new jobs.

Conus economist Pete Faulkner said Cyclone Debbie had also provided a jobs silver lining with post-disaster repairs and rebuilding in the Whitsundays — which is included in the Mackay regional data — contributing to the construction boom.

Mr Williamson said domestic and international tourism numbers were up 30 per cent. Last night’s sold-out concert by Sir Elton John alone attracted 5000 visitors, with a $4 million boost to the local economy.

The Gold Coast is also enjoying a boom, driven in large part by the build-up to next April’s Commonwealth Games, gaining 18,500 jobs in the past 12 months, split evenly between full-time and part-time.

Mr Faulkner said the gap between the unemployment rate on the Gold Coast and the state average had never been greater.

The figures show 11,500 more jobs on the Sunshine Coast over the year, 6400 of them in construction, pushing the unemployment rate down to 4.8 per cent.

Building has also been a driver in Cairns, creating 3100 of the 10,300 extra jobs there which have made it the third fastest-growing region.

“There are cranes on the skyline, which we have not seen for years,” Mr Faulkner said.

The city’s new $54 million aquarium opened this week, the Performing Arts Centre and several hotel upgrades are in swing and there are plans for more international student accommodation with expansions of campuses for James Cook University, Central Queensland University and the opening of a Charles Darwin University campus.

Townsville continues its fightback from the mining downturn and closure of Clive Palmer’s nickel refinery, adding 16,200 jobs over the year.

But Mr Faulkner said it came from a very low base and remained 9000 below its peak more than four years ago.

Wide Bay, focus of the Federal Government’s cashless welfare card initiative announced this week, continues to shed jobs — down by 3500 and its 9.6 per cent unemployment rate is the state’s second worst after the Outback.

Mr Faulkner said the Fitzroy region — Rockhampton and Gladstone — was worrying, with 8700 jobs lost. Rockhampton is now holding its breath in hope that Indian energy giant Adani will select the city ahead of Townsville when it names the location of its Fly In, Fly Out hub for the Carmichael mega-mine next month.