The Hunter's unemployment rate rose faster than the state average in May following an increase in the region's workforce participation rate.
Australian Bureau of Statistics figures show the region's labour force grew by more than 19,000 between April and May. The total number of people who secured work from this figure was 12,700, which shows that while participation increased, unemployment also grew by 6,700.
The state's unemployment rate rose by 0.5 of a per cent to 4.0 per cent, whereas the Hunter Valley rose 1.6 per cent to 4.1 per cent, Newcastle and Lake Macquarie rose 1.8 per cent to 6.5 in May.
"Even if we take out the monthly volatility and look at the average annual unemployment rates, there has still been a rise across the region," Business Hunter chief executive Bob Hawes said.
"In terms of labour force, however, it is important to note that the number of people entering employment has grown to just 7,600 shy of pre-covid 2020 levels - so we're getting there. More people are getting back to work and that's a good thing for businesses who are crying out for staff."
The Hunter still lags the state and national recovery in terms of participation rate but the increase to 64.6 per cent in May represents a significant shift from the April rate of 60.8 per cent.
Despite the increase in unemployment, businesses and recruitment consultants continue to experience difficulties in finding and placing people in roles.
Online job vacancies in the Hunter continued to rise in April 2022 to an unprecedented 6,640 positions.
"There are still a few things not adding up in the region and our Powering Business 2050 Summit did provide some insights on the disconnects in the region that has tempered our bounce back in the recovery of employment and our workforce," Mr Hawes said.
"The summit's presenters gave strong signals about employment flexibility, communication and engagement as well as skill and experience in the context of job suitability as being important factors in reconciling the job market we are experiencing, and we are keen to elaborate on these factors as the region contemplates and engages in a future potentially very different to today."
More than 90 per cent of businesses are experiencing workforce shortages, according to the June Business NSW 2022 Workforce Skills Survey which showed that almost every business in NSW has unfilled vacancies.
