Unemployment in the Hunter region continued its downward trend in May, dropping from 4.0 per cent in April to 3.7 per cent, indicating that the job market is nearing ‘full employment’.
According to the Australian Bureau of Statistics Labour Force figures, the unemployment rate fell to 3.8 per cent in the Newcastle and Lake Macquarie statistical area, and just 3.4 per cent in the Hunter Valley (excluding Newcastle), or 3.7 per cent combined, compared to the statewide figure of 4 per cent.
Business Hunter CEO Bob Hawes said while regional figures can be volatile on a month-to-month basis, the more reliable yearly average also shows positive conditions for jobseekers. The 12-month average for Newcastle and Lake Macquarie was just 3.2 per cent, and for the Hunter Valley, 4.3 per cent, compared with a NSW average of 4 per cent.
“Unemployment rates remain very low by historical standards, with only 13,600 people unemployed, which suggests anyone who wants a job in the region should be able to find one,” Mr Hawes said.
“However, there are nuances to consider, such as underemployment and a mismatch between the skills available in the labour market and the jobs on offer.”
“Interestingly, while unemployment rates improved, the total number of people employed in the region actually fell by 11,700 in May.”
“This is reflected in lower participation rates across the region, indicating that more people of working age have decided to leave the labour force altogether, either permanently or temporarily, for reasons such as travel, career breaks, early retirement, or family care commitments.”
The Jobs and Skills Australia Internet Vacancy Index saw a 2.5 per cent increase in job ads from April to May, suggesting employers continue to search for talent, despite the relatively small pool of candidates. Although job ads were 17 per cent lower than 12 months ago, they remain strong compared to pre-COVID levels and consistent with markets elsewhere in NSW.
The region’s youth unemployment (15 to 24-year-olds) remained tight at 5.6 per cent in May, slightly up from 5.4 per cent in April.
“It seems the days of double-digit youth unemployment are behind us in the Hunter, and the market remains buoyant for young people looking for work,” Mr Hawes noted.
IMAGE | Business-person working
