Mixed results for Tasmania’s economy with population growth near an eight year low

There’s been mixed results for Tasmania’s economy with a new report showing record low unemployment but the worst population growth in the country.

Hobart aerial. Picture: Supplied

Tasmania’s population growth is near its lowest point in eight years and its economic performance has slipped despite improvements in the job market, a new report shows.

The state’s population growth was the worst in the country, according to the latest CommSec State of the State report, which said the annual population growth of 0.41 per cent was near an eight-year low.

CommSec State of the States Report July 2024 shows Tasmania ranked last on population growth. Picture: CommSec

Opposition Treasury spokes­­man Josh Willie said the report “dealt another blow” to the Rockliff government.

“Annual population growth is the weakest it’s been in eight years, and that has been driven by the worst net interstate migration levels we’ve seen in decades,” Mr Willie said.

Labor shadow treasurer Josh Willie said the report dealt a blow to the Rockliff government. Picture: David Killick.

Treasurer Michael Ferguson welcomed the report, saying while national economic headwinds were creating challenges across the country, it was pleasing that Tasmania had the second-strongest job market with a record low unemployment rate.

Encouragingly, the state had the second-highest-performing job market with the unemployment rate 33 per cent below the decade average, according to the report.

CommSec State of the States Report July 2024 showing Tasmania second place for unemployment. Picture: CommSec

“Tasmania emerged from the pandemic stronger and faster than the rest of Australia, and it is clear that other states are now catching up,” Mr Ferguson said.

“This report comes off the back of recent ABS data showing Tasmania has record low unemployment of 3.8 per cent.”

Treasurer Michael Ferguson said it was pleasing Tasmania had the second highest performing job market. Picture: Stephanie Dalton

CommSec senior economist Ryan Felsman said that despite ranking second on jobs and construction, Tasmania dropp­ed from fourth to sixth on the economic leaderboard.

“Tasmania comes second on two indicators, but housing activity has slowed recently which has been a drag on economic performance.”

Mr Felsman said Tasmania was among three states that dropped down the rankings.

“Generally speaking, state economies have slowed as consumers respond to higher borrowing costs and price pressures,” he said.

“The future economic path will be dependent on the resiliency of the job market and interest rates.

Originally published as Mixed results for Tasmania’s economy with population growth near an eight year low