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The great jobs glut: Qld hits record low unemployment and promises more to come

Queensland’s unemployment has fallen to an historic low of 3.2 per cent as the national level increased to 3.5 per cent.

Sep 15, 2022, updated Sep 15, 2022
Queensland's jobless rate hit a record low in August

Queensland's jobless rate hit a record low in August

The bad news is that the strong job market is likely to lead to another increase in interest rates next month, but economists are divided over whether it would be a rise of 25 basis points or 50.

The Palaszczuk Government said 214,700 jobs had been created in Queensland since the pandemic began and the better-than-expected jobs figures could be attributed to the Covid response which allowed business to continue to operate with only limited lockdowns.

Treasurer Cameron Dick said 83 per cent of the jobs created in that time were full time jobs and today’s figures showed another big increase in this area. About 12,000 full time jobs were created last month while about 13,000 part time jobs were lost.

This could be related to employers shifting to workers from part time to full time.

About 50,000 full-time jobs have been created in Queensland since the start of the year while 25,000 part-time jobs had been created.

The Government has also predicted the state would create another 280,000 jobs over the next three years.

Significantly, the data showed unemployment dropped by 0.5 per cent in Queensland, a significant fall that put it ahead of NSW and Victoria with only WA (3.1 per cent) and the Northern Territory (2.7 per cent) providing a stronger job market.

While the data from the Australia Bureau of Statistics was predominantly good news there were some downsides, including the likelihood of a rate hike.

Also, Queensland’s pool of workers shrank by 14,000 last month, a worrying figure for employers who have been struggling to find workers.

“We always see challenges in the economy all the time and I think I would rather have this challenge of strong employment growth, strong economic activity to provide pathways of opportunities. A job is the best thing a Government can give to someone,” the Treasurer said.

“This is good news for Queensland and they should be really proud of their efforts.”

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He said Queensland had added the most full-time jobs of any state or territory since the start of the pandemic.

“Our unemployment rate is now the lowest among eastern states,” he said.

ANZ said it expected the national unemployment level to fall below 3 per cent early next year.

AMP Capital economist Shane Oliver has tipped a rate of about 3.2 per cent.

“However, job vacancies are starting to soften a bit and the jobs market is a lagging indicator,” he said.

He said nationally employment grew by 33,500 in August, but the rise in participation saw unemployment increase to 3.5 per cent. Underemployment fell to 5.9 per cent.

Federal Treasurer Jim Chalmers said it was encouraging to see more jobs created and unemployment around its historic low, “but we know there’s more to do to create opportunities for more Australians – and to get wages moving again”.

 

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