Local unemployment rises again

7 October 2010

South Australian unemployment increased in September 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 September 2010 increased 0.1 percentage point from the previous month’s figure to 5.5 per cent.

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

Nationwide the participation rate increased 0.2 percentage points to 65.6 per cent, while South Australia’s participation rate remained at 63.5 per cent.

Business SA Acting Chief Executive Officer, Brett Mahoney, said the data reflected the pressure being felt throughout the local economy.

“South Australia’s unemployment increased to 5.5 per cent in September and we now have the highest unemployment in the country,” Mr Mahoney said.

“Challenges remain for the business community and speculation of future interest rate rises is of major concern to the many small businesses across the State.

“As we head towards the Christmas trading period, it is important that consumers have the confidence to spend and businesses have the confidence to employ more staff.

“South Australia’s retail trade figures have remained under pressure and rising labour costs from minimum wage increases and transitional provisions to Modern Awards is adding further heat to businesses.

“This week’s retail figures and unemployment data provide no justification for an increase in interest rates before the end of the year.

“We are still seeing a two speed economy and results from this week’s Commonwealth Bank Business SA Survey of Business Expectations indicate that local business confidence remains low.”