Fall in local unemployment rate

South Australian unemployment decreased in August 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 August 2011 decreased 0.1 percentage point to 5.1 per cent.

Statistics show the national unemployment rate for August increased 0.1 percentage point to 5.3 per cent.

Nationwide the participation rate remained at 65.6 per cent, while South Australia’s participation rate decreased 0.5 per cent to 63.2 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said the decrease in unemployment was a positive sign for the local economy.

“It is a tough environment out there but we welcome this decrease in the local unemployment rate,” Mr Vaughan said.

“While South Australia’s unemployment rate is heading in the right direction, the change in the participation rate reflects discouraged job seekers leaving the labour market as opposed to the reduction in the number of unemployed people.

“This is supported by the fact that both the number of unemployed people and employed people decreased.

“The increase in unemployment nationally confirms the pressure being felt throughout the country and the Reserve Bank should seriously look at a reduction in interest rates in the lead up to Christmas.

“With consumer spending remaining low, costs rising and turmoil on global financial markets, we expect pressure to remain on employment levels in the coming months.”