Unemployment rate in the NT spikes as people rush into job market, with 3000 jobs added in October

UNEMPLOYMENT in the Northern Territory has risen to 5.7 per cent, despite more than 3000 Territorians returning to work.

UNEMPLOYMENT in the Northern Territory has risen to 5.7 per cent, despite more than 3000 Territorians returning to work.

The number of Territorians with jobs surged by 3100 in October, but a larger coinciding spike in those looking for work led to a 1 per cent increase in the unemployment rate to 5.7 per cent.

The NT’s labour force – the pool of people who are in jobs or are looking – rose to 137,000 in October, according to Australian Bureau of Statistics figures released yesterday, an increase of 4600 people compared to September.

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The Territory’s unemployment rate is the second lowest in the nation behind the Australian Capital Territory, and well under the national average of 7 per cent.

ABS head of labour statistics Bjorn Jarvis said a strong rise in workforce participation increases had not quite offset the “slight increase” in the unemployment rate nationally.

“The number of people actively looking for work and who were available to start work increased in October,” he said. “Coupled with a strong increase in employment, the participation rate increased by almost a whole percentage point in October to be just 0.1 percentage points below March.”

The Territory’s Treasury boffins expect the jurisdiction’s unemployment rate to hit a high of 6.3 per cent this financial year, according to last week’s budget.

The unemployment rate is forecast to progressively fall to 5.1 per cent by 2023/24. Meanwhile, youth unemployment has increased to 14.1 per cent.

A total of 500 young people aged 15 to 24 found jobs in October as the number of youths in the queue jumped to 2700.

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Overall, about 75 per cent of jobs lost nationally during COVID-19 have returned, but the eventual end of JobKeeper is expected to further impact on unemployment figures.

Australia’s unemployment rate climbed as high as 7.5 per cent in July, before falling to 6.8 per cent in August, although the “effective” rate of unemployment remained above 9 per cent in September.