New ABS data shows NT unemployment rate the lowest in the nation

The NT labour market has never been tighter with Australian Bureau of Statistics data showing the NT unemployment rate at the lowest in the nation.

THE Territory labour market has never been tighter with Australian Bureau of Statistics data showing the NT unemployment rate at the lowest in the nation and the demand for workers never greater while the supply has never been lower.

There were a record 5,000 job vacancies in May compared to 6,200 people looking for work. In the private sector alone, Territory businesses are seeking 4,100 workers.

The Territory is close to effective full employment.

Payroll jobs data shows that there are now 8 per cent more jobs in the Territory than before Covid-19 struck – the biggest increase in the nation by a long way. There are around now 5,400 fewer workers in the NT’s labour pool compared to early 2020.

And while this may sound nothing but good news a leading Territory economist has warned it also threatens economic recovery.

Ian Satchwell, who has more than three decades’ experience in economics and industry policy at domestic and international levels says Territory employers are caught in a pincer of growing business activity and critical worker shortage, very likely leading to higher wages as employers compete for increasingly scarce labour.

“It is also certain to hold back business activity and economic growth,” Mr Satchwell said. “For several sectors, demand for goods and services already exceeds the ability of businesses to supply. As new investment arrives in the Territory to develop multiple industry sectors, the situation is only going to get worse.”

Mr Satchwell says Covid’s impact is stark.

“In 2019, net overseas migration to the NT was 1000 people in short and long term visa categories, supplemented by overseas students, plus backpackers doing their lap around Australia, but in 2020, only net 76 additional migrants arrived,” he said.

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“Thankfully, interstate migration outflow was not nearly as high as in recent years with a net loss of 1334 people during 2020, as many chose to ride out Covid here.” The Territory lost net around 4000 people to other states in 2018 and again in 2019. The labour market squeeze is showing up in other ways.

TOTAL wages being paid in the Northern Territory are 9 per cent higher than before the pandemic hit – by far the largest increase in the nation.

WOMEN, under 19s and over 60s are doing better than others in both jobs growth and wages paid as employers reach out to non-traditional sources of workers.

PEOPLE wanting to work more hours than offered is the lowest in Australia.

THE NT has the highest rates of people employed per head of population and those looking for work as a proportion of work age people.