Tasmania records lowest unemployment figure on record

Tasmania’s lowest headline unemployment figure in 44-years comes with a catch, a leading economist warns. WHAT YOU NEED TO KNOW >>

TASMANIA’s unemployment rate has hit a record low of 3.8 per cent.

It is the lowest seasonally-adjusted figure since records were first kept in 1978.

Australian Bureau of Statistics Labour Force figures released on Thursday showed the state had the third-lowest unemployment rate in the nation behind Western Australia and the ACT.

Premier Peter Gutwein hailed the result — which eclipsed the national result of 4.2 per cent — as a sign of a vigourous economic revival.

“The new ABS data released today also showed that full-time employment grew in January, with the number of women employed full-time growing by 1,200 in the month,” he said.

“There are now 2,600 more Tasmanians in work than January last year, and 1,200 more in work than before the start of the pandemic.”

“Our economy is nation-leading and employment is at near-record levels, and our businesses are looking to hire.”

Premier Peter Gutwein. Picture: Nikki Davis-Jones

The national unemployment rate was 4.2 per cent.

Early predications that the state could be driven to double digit unemployment by the economic impact of the pandemic have proved to have been unduly pessimistic.

The ABS has temporarily suspended the trend measure of unemployment, which is considered a more robust measure.

Leading economist Saul Eslake said the result was not as good as it looked.

“While a ‘record low unemployment rate’ sounds like something to celebrate, it isn’t really a good news story,” he said.

“It owes much more to the shrinkage in the workforce than it does to strong employment growth.

“Put differently, only 57.7 per cent of working-age Tasmanians had a job in January, compared with 63.4 per cent of all working-age Australians.”

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The size of the labour force shrunk by 6200 workers from 275,500 in November to 269,300 in January.

A shortage of workers has repeatedly been cited by the state government as a brake on growth.

Mr Gutwein noted that new job vacancies in January are 72.6 per cent higher than before the pandemic, which is the second highest growth in the nation, according to the National Skills Commission.

Senator Eric Abetz said the figures were not a matter of luck.

“The unemployment rate is the lowest on record and reflective of the assured strong economic management by both state and federal Liberal Governments,” he said.

“Increased job numbers are more than statistics; they’re of tangible benefit to individuals, businesses, the economy and greater society.”

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