Unemployment rate rises as thousands give up looking for work

UPDATED: The size of Tasmania’s labour force has shrunk from 275,800 in March to 256,000 in May — indicating that tens of thousands of people have given up looking for work.

TENS of thousands of Tasmanians have given up looking for work as the economic slowdown caused by the coronavirus pandemic continues to play havoc with the state’s labour market.

The unemployment rate in Tasmania reached 6.4 per cent in May in seasonally adjusted terms — up from 6.2 per cent the month before.

The rate for men was 6.5 per cent, and 6.3 per cent for women, with a total of 16,200 unemployed.

UNEMPLOYMENT UP IN TASMANIA AS VIRUS SHUTDOWN BITES

Tasmania’s unemployment rate was the second-lowest in the nation, with the ACT recording 3.8 per cent and NSW coming in at 6.4 per cent. The national rate was 7.1 per cent.

But the size of Tasmania’s labour force has shrunk from 275,800 in March to 256,000 in May — indicating that tens of thousands of people have given up looking for work.

The participation rate dropped from 61.8 per cent to 57.3 per cent, and 14 per cent of the workforce is considered underemployed.

And the number of hours worked has slumped by 13 per cent in just three months, to a level not seen since 2003.

Premier Peter Gutwein said the numbers were better than many were expecting, but he urged caution.

“While it’s a better number than what might have been announced, obviously the participation rate plays into that as well, but also the fact that JobKeeper is not included, because they’ve been excluded from the unemployment statistics.

“So, while the headline rate is better than the national rate, obviously there are still a lot of Tasmanians who have lost their jobs, which is why we rolled out a couple of weeks ago that support for a $3.1 billion construction package, because we know that we need to provide opportunity for people in terms of work moving forward.

“I don’t think they show an argument for [Job Keeper] to be extended. I think what they do demonstrate is that there are a lot of people that are benefiting from what was a very good Federal Government program.”

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Labor Senator Carol Brown said the figures showed a heartbreaking 16,200 Tasmanians were without jobs.

“A further 37,100 Tasmanians can’t get the hours of work they need,” she said.

“In total, 53,300 Tasmanians now find they can’t get enough work to make ends meet and put food on the table.”

“The Morrison Liberal Government’s current approach is leaving thousands of Tasmanians behind. Labor continues to call on the government to expand access to JobKeeper.”

UNEMPLOYMENT FELL IN MARCH