THE Hunter had a lower jobless rate than the state as a whole, meaning it was well placed to withstand any financial downturn, Business Hunter chief Bob Hawes said yesterday.
Commenting on December employment figures released this week by the Australian Bureau of Statistics, Mr Hawes said the unemployment rate for Newcastle and Lake Macquarie was 2.8 per cent, and 2.7 per cent for the rest of the Hunter Region.
This compared with a national rate of 3.5 per cent and a statewide figure of 3.0 per cent.
University of Newcastle economist Professor Bill Mitchell also commented on the ABS figures, saying the national labour market was entering a "slow decline".
"The (national) participation rate fell 0.2 points, which meant the fall in the labour force reduced the rise in unemployment that occurred as a result of the employment decline," Professor Mitchell wrote on his economic outlook blog.
"However, the underlying unemployment rate is closer to 5.4 per cent rather than the official rate of 3.5 per cent, which indicates the labour market still has slack. There are still 1.36 million Australians without work in one way or another (officially unemployed or underemployed)."
Although the ABS cautions against placing too much importance on a single month's regional figures, they are in line with a tightening trend that began midway through last year.
Business Hunter chief executive Bob Hawes acknowledged the "volatility in the monthly figures", but described the sub-3.0 per cent rates as "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 from the ranks of the unemployed," Mr Hawes said.
He said youth unemployment rates had stabilised at about 7.5 per cent, or less than half of the pre-COVID level.
"This is a far cry from the double-digit high teens numbers we witnessed through early COVID and prior to 2020," Mr Hawes said.
"It's a particularly strong result given the December youth figures will reflect growth in the numbers of youth seeking employment as a consequence of the start of the drift of school, TAFE and University students into the workforce."
The Newcastle Herald has spoken with numerous food and retail outlets that have had trouble filling long-term job vacancies for teenagers or young adults.
Mr Hawes said the figures indicated the regional economy was in a good position to cope with the impacts of high inflation and increased interest rates.
"Businesses are still looking for people and it is clear people who are looking for work are finding opportunities, be that in part-time or full-time roles," Mr Hawes said.
He said the most recent National Skills Commission Internet Job Vacancy Index, for October 2022, showed employers were trying to fill 7000 jobs.
"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," Mr Hawes said.
"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."
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