Unemployment fell across the Hunter region in September, but the figures reflect a shrinking participation rate rather than a buoyant job market, with the labour force dropping to its lowest level in more than 12 months.
Australian Bureau of Statistics (ABS) Labour Force figures for September show regional unemployment fell to 4 per cent, down from 4.8 per cent in August, across the region.
In the Newcastle and Lake Macquarie statistical area, the rate was virtually unchanged at 4.7 per cent, but there was a significant drop in unemployment across the rest of the Hunter Valley, from 5.1 per cent in August per cent to 3 per cent.
The ABS reported the regional labour force – the number of people either in work or looking for work – at 363,600, the lowest since August 2024, when it dipped below 360,000.
At the same time, the number of job ads across the region in September rose to 5,335 roles or by 4.3 per cent, according to the Jobs and Skills Australia Internet Vacancy Index.
Business Hunter CEO, Bob Hawes attributed the disparity between a falling labour force and rising number of job vacancies to the “continuing disconnect between the skills and experience of those seeking employment compared with what employers are looking for”.
“What appears to be happening is that people are effectively giving up the job search and opting out of the labour market because they don’t have the skills or qualifications that employers are seeking,” Bob said.
“The Jobs and Skills Australia Internet Vacancy Index notes over 40 per cent of advertised jobs in our region in September sought candidates with bachelor degrees or high-level diplomas yet the cohort of unemployed in the region is skewed to those with few skills and lower education levels.”
Bob said sagging labour force participation was most evident in the Hunter Valley statistical area (excluding Newcastle and Lake Macquarie) where skills mismatches and other barriers such as access to transport and affordable housing are impacting the workforce.
The number of people in full-time employment in September fell by 7,300 in the Hunter Valley, compared with a rise of 4,700 in Newcastle and Lake Macquarie.
The number of people either in work or actively looking for work in the Hunter Valley fell by 7,700 people, which saw the participation rate drop from 60.5 per cent to 57.4 per cent. By comparison, the participation rate in Newcastle and Lake Macquarie was virtually unchanged across the month at 63.6 per cent.
Bob said a reduction in job opportunities for young jobseekers in the region continued to be a cause for concern.
“There was a fall of over 11,000 in the number of part-time roles in the youth market (15- to 24-year-olds) in Newcastle and Lake Macquarie,” Bob said.
“There will be seasonal factors at play here, but these numbers will warrant watching as we move towards the busy Christmas period in the hope there is a significant rebound.
“The total number of youth employed in the region has dropped by 16,000 in the last twelve months, which is continuing to erode some of the significant post-COVID gains made in youth employment.”
IMAGE | Business Hunter CEO, Bob Hawes.
