Unemployment up in Tasmania as virus shutdown bites

UPDATED: The number of jobless people in Tasmania jumped last month — but the result was a lot different to what was predicted.

TASMANIA’S unemployment rate was 6.2 per cent in April — a rise of 1.3 percentage points, official figures show.

But much heavier job losses predicted as a result of coronavirus-related shutdowns were not reflected in the Australian Bureau of Statistics Labor Force figures released on Thursday.

Tasmania’s unemployment rate was 4.9 per cent in March, before measures to contain coronavirus shut down large parts of the state’s economy.

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The number of people with jobs in the state fell 11,400 between February and April.

Earlier this week, Premier Peter Gutwein predicted an unemployment rate as high as 12 per cent.

He said the latest figures reflected an economy which had been the envy of the nation.

“Tasmania’s economy, prior to the pandemic in March, was the envy of the nation, leading across a raft of performance indicators,” he said.

“This included annual jobs growth — the highest in the nation — and the fastest growing economy in the country.

“As we look towards recovery, we must take safe steps and we must take sound steps.” Nationally, the unemployment rate rose one percentage point to 6.2 per cent.

The ABS said about 600,000 people lost their jobs across Australia during April.

The nation’s underemployment rate increased 4.9 percentage points to 13.7 per cent — the highest on record — and the number of hours worked fell by 9.2 per cent

The number of underemployed people increased by 600,000 in April to 1.8 million, an increase of almost 50 per cent.

Labor leader Rebecca White said the statistics painted a grim picture — and highlighted the need to continue federal assistance measures.

“We need to fight to save every job in Tasmania,” she said. “And if the Federal Government proceeds with its decision to remove JobKeeper in September, we will see a massive further spike in the unemployment rate.

“More than 20,000 Tasmanians have lost their jobs from this pandemic.

“Withdrawing JobKeeper too early, or reducing the number of businesses and workers that benefit, risks forcing thousands more people into unemployment.”