Fall in local unemployment

7 July 2011

South Australian unemployment declined in June according to the State’s leading business membership organisation, Business SA.

The Australian Bureau of Statistics Labour Force figures show the seasonally adjusted unemployment rate for South Australia in June 2011 decreased 0.3 percentage points to 5.1 per cent.

Statistics show the national unemployment rate for June remained steady at 4.9 per cent.

Nationwide the participation rate remained at 65.6 per cent, while South Australia’s participation rate increased 0.2 percentage points to 63.8 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said the decrease in unemployment was welcome news for the local economy.

“It remains a very challenging environment but we welcome this fall in unemployment,” Mr Vaughan said.

“South Australia no longer has the highest rate of unemployment and we are moving closer to the national average which is pleasing.

“This month’s labour force data is relatively positive, with the number of employed rising and unemployed falling, both in South Australia and nationally.

“There is some concern about the impact of the wage rises from July 1 on small businesses throughout the State and we will wait for next month’s data to gauge this impact.

“Despite the positive figures, this week’s retail data confirmed the weakness that remains in many parts of the economy and it is essential that business and consumer confidence levels recover.

“Any interest rate rise in the coming months will certainly force businesses to review employment levels, at a time when consumer spending is low and business costs are rising.”