NT youth unemployment rate highest in nation as more than 10,000 Territorians jobless

YOUTH unemployment in the Territory has reached a staggering new height, as new labour force data shows thousands of Territorians were out of a job in July

YOUTH unemployment in the Territory has reached a staggering 19.2 per cent, as new labour force data shows more than 10,000 Territorians were out of a job in July.

The unemployment rate in the NT rose to 7.4 per cent in July, up from 5.7 per cent in June according to Australian Bureau of Statistics data.

It comes on the back of more people re-entering the workforce but economist Saul Eslake warned the NT still had the largest drop (-3.6 per cent) in the participation rate in the country since COVID-19 hit in March.

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He said that based on the current data, the Territory’s effective unemployment rate – which takes into account not only people who are officially unemployed but those who have left the labour force altogether or are on zero hours – would be 11.9 per cent and the highest in Australia.

Mr Eslake said the unemployment rate in the Northern Territory, which had gone into the pandemic in a “precarious” economic position, had been “flattered” by a combination of people leaving the NT and people not looking for work

The NT’s youth unemployment rate rose from 13.6 per cent in June to 19.2 per cent in July, the equal highest in the country alongside Queensland and the highest it’s been in the Territory since 2002.

Mr Eslake said the NT’s small population size could result in “big unexplained moves” in the sample and the rise in youth unemployment could be a random swing.

Saul Eslake. Picture: RICHARD JUPE

A total of 1100 people had re-entered the NT workforce in July after the mysterious disappearance in June of 5000 people, with Mr Eslake saying relaxing restrictions could be giving Territorians more confidence to begin looking for work again.

Job ads in the NT were down 1.8 per cent in July compared to June according to website SEEK’s latest employment report. Nationally, the number of unemployed Australians breached one million for the first time in July.

ANZ senior economist Catherine Birch said the Victorian employment rate would likely fall sharply in August and September with the move to stage 4 coronavirus restrictions and take employment elsewhere in the country with it.

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“While Victorian workers and businesses will suffer the worst of the impact, employment elsewhere in the country will also be affected,” she said.