The Hunter region is outperforming the state’s unemployment rate, according to the latest Australian Bureau of Statistics (ABS) data.
Based on the labour force figures released by the ABS at the end of last year, Newcastle and Lake Macquarie both experienced a drop from 3% to 2.8% in November.
The Hunter Valley also plunged to 2.7%, from 4.6%, while the NSW average sat higher at 3.5%.
Business Hunter CEO Bob Hawes said the information highlighted a robust regional economy.
“While there was volatility in the monthly numbers, we now have a situation where the unemployment rates for the Hunter Valley and Lake Macquarie/Newcastle regions were tracking at less than 3%,” he explained.
“This is unheard of in recent times.
“These figures continue to show a bright picture for people in our region seeking work and no signs of a change in the difficulties businesses are having seeking to attract workers.”
Youth unemployment rates are stabilising, too, at around 7.5%, which has more than halved in compared with pre-COVID statistics across the region.
“This is a far cry from the double-digit high teens numbers we witnessed early through the pandemic and prior to 2020,” Mr Hawes said.
“It’s particularly strong given the December youth figures will reflect growth in the numbers of youngsters seeking employment as a consequence of the start of the drift of school, TAFE and university students into the workforce.”
From an economic point of view, Mr Hawes said the latest figures painted a strong picture of health, suggesting there would be some resilience in the region should the impacts of high inflation and the recent rises in interest rates took a stronger hold.
“It really is a situation where the pay-packet impact across the region is relatively strong, which we hope will build resilience for households and businesses if things do get tighter quickly,” he added.
“Businesses are still looking for people and it is clear those who are looking for work are finding opportunities, be that in part-time or full-time roles.”
The workforce participation rate in Newcastle and Lake Macquarie has remined above 70% and the Hunter Valley figure has also recovered to its pre-COVID mark of around 64%.
Since December 2019 (or the eve of the pandemic) 32,700 jobs have been created in the region, a growth of 9% at a time when the ABS estimated the workforce population (people 15 years and over) grew by 36,000 or 6.7%.
The latest National Skills Commission Internet Job Vacancy Index for October 2022 was showing employers were trying to fill around 7,000 positions, which Mr Hawes said partially explained why there had been growth in the workforce and the number of people employed.
“We foresee the trend of continuing underlying strength in the employment market into early 2023 as cost-of-living pressures and rising interest rates will mean households will be keen to maximise their income potential and maintain their income relativity by staying in work,” he added.
“There are no signs of demand from industry to employ people dropping off just yet either.
“Although we do believe there will be some softening in some sectors as household spending backs off in early 2023 and interest rate increases continue to bite both the household and business sectors.”
For more business stories:
- Applications open to revitalise Port of Newcastle precinct
- Visitor Economy Grants to boost Cessnock business sector
- Energy challenges prompt Hunter businesses to call for help
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