Queensland’s Headline Unemployment Rate Returns to 6.0% as Full-Time Job Creation Slows
Queensland’s unemployment rate notched up to 6.0% in May on a trend basis as the national benchmark was unchanged at 5.1% according to the latest data released from the Australian Bureau of Statistics (ABS).
The Chamber of Commerce and Industry Queensland (CCIQ) notes that the creation of around 6,250 jobs in Queensland was, for the second month running, predominantly in part-time positions consisting of an additional 900 full-time positions and of 5,350 part-time roles.
While Queensland has managed employment growth of 1.86% year-on-year to May, which is greater than New South Wales (0.40%) and Victoria (0.26%), these southern states still account for more than 80% of jobs created nationally.
CCIQ Chief Economist, Dr Marcus Smith said it is important to acknowledge that Queensland is a small business state with two-thirds of the state’s labour force employed by small and medium size enterprises with less than 200 staff, and the payroll tax reforms announced in the state budget will enable small business growth.
“While the overall growth in jobs has averaged a run-rate of around 5,800 jobs per month since the beginning of the year, the underlying story is that full-time positions have slowed quite substantially in contrast to part-time roles which have been increasing.
“For too long the state economy has lacked significant private sector investment and has struggled to create quality full-time roles with some regions in the state have faring worse than others.
“Together, the payroll tax relief package, the Adani Carmichael mine approval in central Queensland and the conclusion of the federal election, the auspices are right for rejuvenation in business confidence within the state’s private sector and the ignition of the engine room of the economy,” Dr Smith said
CCIQ notes that the May revisions in the ABS trend employment data indicate an upside bias in momentum in the State’s unemployment rate.
Note: Data is sourced from the ABS Labour Force catalogue #6202.0.