Local unemployment increase

South Australian unemployment increased 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 2010 increased 0.1 percentage points from the previous month’s figure to 5.4 per cent.

Statistics show the national unemployment rate for June remained at 5.1 per cent.

Nationwide the participation rate increased 0.1 percentage point to 65.2 per cent, while South Australia’s participation rate also increased 0.1 percentage point to 63.2 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said the data confirmed the pressures being felt throughout the local economy.

“We’ve had four increases in unemployment in the past five months and there are many challenges ahead for the business community,” Mr Vaughan said.

“South Australia was the only mainland State to have a rise in the unemployment rate and this follows the State having the largest decrease in retail trade in May.

“With rising labour costs from minimum wage increases and transitional provisions to Modern Awards, the pressure will remain on unemployment levels in the coming months.

“The local economy has performed well throughout the downturn, however interest rates have risen too soon and put the heat on many small businesses throughout South Australia.

“Recent consumer and business confidence surveys, including our own Commonwealth Bank Business SA Survey of Business Expectations, show downward trends in confidence throughout the economy.”