Labour Force Figures - September 2012

Thursday 11 October

Australia's seasonally adjusted unemployment rate increased by 0.3 per cent to 5.4 per cent in September, as announced by the Australian Bureau of Statistics (ABS) today.

The Australian Bureau of Statistics has today released a worrying set of labour force statistics that show unemployment worsening at both the state and national levels.

The Chamber of Commerce and Industry Queensland (CCIQ) is concerned by these figures and wants to see action taken to reverse an upward trend in unemployment across the country.

Nationally, the seasonally adjusted unemployment rate increased by 0.3 per cent to 5.4 per cent in September, with the participation rate down to 65.2 per cent, 0.3 points lower than this time last year.

Australia’s labour force statistics have been stagnating or in decline for months now, and this was cited by the Reserve Bank as partly motivating its decision to cut interest rates in October.

Queensland’s seasonally adjusted unemployment has hit 6.3 per cent, which represents a full one per cent jump since September 2011 and is the worst unemployment result of all the mainland states.

Full-time employment decreased by 10,700, with total employment decreasing by 20,800. On top of this, the participation rate fell by 0.4 per cent to 66.3 per cent.

While some may seek to attribute this sharp rise in unemployment to the State Government’s plans to cut the public service by 14,000, we consider that this is unlikely, given that the Government’s redundancy program is only in its early stages.

Rather, CCIQ considers that the prime driver of unemployment in Queensland are the continuing financial and operational pressures being placed on business that are causing them to reduce their workforce.  

While CCIQ holds concerns about the higher unemployment figures in Queensland this month, we continue to support the State Government’s plan to rein in public service numbers as part of a program of fiscal consolidation on the basis that the State Government, like all employers, must make tough but fiscally responsible decisions.

CCIQ is confident that measures announced in the Queensland State Budget, such as addressing payroll tax and introducing a $15,000 first homebuyer grant for those buying a newly built home, along with other initiatives (including a 20 per cent reduction in red tape), will work to reinvigorate business confidence and directly increase employment.

CCIQ also notes that it is becoming increasingly apparent that Queensland, despite being in the midst of a resources boom,  is not immune to softening economic conditions, particularly as the boom slowly comes to an end.

The need to diversify our economy is clear, and accordingly, CCIQ strongly supports the State Government’s focus on building a four-pillar economy designed to create a broad economic base.