Difficult trading impacts employment numbers

Thursday 9 August, 2012 | Tags: Workplace and Employment Policy

CCIQ has today highlighted the relatively poor labour market numbers announced by the Australian Bureau of Statistics as further confirmation of difficult trading conditions for Queensland businesses at present.

In seasonally adjusted terms the unemployment rate jumped quite sharply from 5.3% to 5.8% as a result of an increase in the number of unemployed persons by 12,700.  Queensland currently has the highest unemployment rate of all mainland States.

The labour market numbers do however point to an almost Jekyll and Hyde like nature of the State’s labour market.  Unemployment is growing but companies are also hiring as is indicated by an increase of 6,200 jobs.

Following the state election in March, Queensland businesses expressed renewed optimism as the incoming State Government sought to stimulate the Queensland economy, reduce business costs and ease the burden of regulation.

As is often the case initial optimism can dissipate and the reality inevitably returns.  However at the same time clearly there is a number of national issues at play increasing uncertainty such as the impact of the carbon tax, mineral resources rent tax, increasing business operating costs and a continued drop off in consumer spending.

This has no doubt contributed to the poor labour market numbers announced today.

In seasonally adjusted terms in Queensland:

  • The unemployment rate increased 0.5% to 5.8%
  • There was an increase of 6,200 employed persons in July;
  • The total number of unemployed increased by 12,700; and
  • The participation rate rose 0.4% to 66.5%.

 

In trend terms, in Queensland:

  • Unemployment increased by 0.1% to 5.6% in July;
  • 500 more people became unemployed;
  • There were 2,500 fewer people employed; and
  • The participation rate fell by 0.2% to 66.3%.

 

Full comparison of state and national labour force figures is provided below and the ABS data is attached for information.

 

Trend

Seasonally Adjusted

 

Unemployment rate

July 2012

%

Change from June 2012

%

Change from July 2011

%

Unemployment rate

July 2012

%

Change from June 2012

%

Change from July 2011

%

QLD

5.6

0.1

0.0

5.8

0.5

0.2

NSW

5.1

0.0

-0.2

5.2

0.1

0.0

VIC

5.4

-0.1

0.3

5.4

-0.1

0.2

SA

5.7

0.1

0.5

5.4

-1.0

0.1

WA

3.6

-0.1

-0.6

3.6

0.1

-0.4

TAS

6.9

-0.2

1.7

6.5

-0.9

1.3

AUSTRALIA

5.2

0.0

0.1

5.2

-0.1

0.1