JobKeeper reduction takes toll as NT sheds more jobs in late September

THE Northern Territory had the largest decline in payroll jobs across the country in late September

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THE Northern Territory had the largest decline in payroll jobs across the country in late September, in a worrying sign that recent JobKeeper cuts have hit local businesses hard.

The total number of payroll jobs in the Territory fell by 1.2 per cent and total wages decreased by 0.9 per cent in the last two weeks of September, the Australian Bureau of Statistics revealed yesterday.

Economist Saul Eslake said the decline was certainly a result of the stepping down of the JobKeeper program on September 28.

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“I expect this decline will continue this month and then again in January when further changes come in,” he said.

Chamber of Commerce NT chief executive Greg Ireland said he had seen some businesses reducing their workforce and their overheads.

“That (job decline) is probably an indication that as businesses see the level of support reducing, they are going to reduce their cost base accordingly to continue to survive — ultimately that will lead to workers being displaced,” he said.

Since the pandemic began, jobs in the NT’s accommodation and food services sector have been by far the hardest hit, with the number of payroll jobs down by 14.2 per cent since March.

Jobs in administrative and supportive services were also hit hard (-7 per cent), followed by mining (-6.7 per cent) and wholesale trade (-6.7 per cent).

The data also shows more Territorian men than women have lost their jobs during the COVID-19 crisis and their pay has dropped further.

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Jobs worked by men decreased by 3.5 per cent since March, while jobs worked by women decreased by 1.7 per cent.

It comes after employment data recently revealed more than 5000 jobs were lost in the NT last month, as the Territory’s unemployment rate rose for the first time since June.

The overall participation rate – the proportion of the working age population in work or actively looking for work – also fell slightly in the NT to 70 per cent.