Jump in local unemployment a concern

10 March 2011

South Australian unemployment increased in February 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 February 2011 increased 0.4 percentage points from the previous month’s figure to 5.8 per cent.

Statistics show the national unemployment rate for February remained steady at 5.0 per cent.

Nationwide the participation rate decreased 0.1 percentage point to 65.7 per cent, while South Australia’s participation rate increased 0.2 percentage points to 63.4 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said the data reflected the pressure being felt by local businesses.

“South Australia’s unemployment went against the national trend and increased in February,” Mr Vaughan said.

“It is a concern that unemployment increased to this extent and we now have the highest unemployment rate in the country.

“Low confidence throughout the economy is limiting employment opportunities and we saw this over the Christmas period.

“Further interest rates rises, unrealistic wage increases and rising business costs all have the potential to add further pressure on employment levels.

“We are continuing to see the effects of a two speed economy and South Australia’s recent economic indicators have signalled the pressure that remains on the local economy.

“The increased economic activity generated throughout March in South Australia will hopefully generate a demand for more people in the workforce over the coming month.”