Unemployment in the Hunter Valley has dropped in the most recent monthly figures, falling to 4.5 per cent, down from 5.1 per cent in May, but despite a slight rise in figures for Lake Macquarie, the region has come in broadly better off than the state average, Business Hunter CEO Bob Hawes has indicated.
The region lost 3700 mostly full-time jobs in June adding to the 10,400 lost in May, but Mr Hawes said the data still suggested the regional labour market remained relatively tight.
Despite the fall in unemployment in the Hunter Valley, the overall unemployment rate for the region also eased from 3.1 per cent to 3.3 per cent. This remains well below the rates recorded for NSW, which rose to 3.9 per cent, and Australia, which rose to 4.1 per cent.
The Newcastle and Lake Macquarie monthly unemployment rate rose to 2.4 per cent, up from 1.7 per cent in May, while the rate in the Hunter Valley fell to 4.5 per cent, down from 5.1 per cent in May.
Mr Hawes said volatility in the participation rate around the region - or the percentage of working age people in the labour force - which was sitting well below the state average despite the more promising unemployment rates comparison, had "masked" the figures to some extent and boded concerning signs ahead.
"The participation rate fell again in the Hunter Valley, from 62.2 per cent in May, to 58.1 per cent in June and had the rate not dropped, the unemployment would have been worse," Mr Hawes said.
"We're continuing to see signs that job seekers are withdrawing from the market outside of Newcastle and Lake Macquarie and we suspect issues like travel, housing and skills and experience mismatch are contributing to this."
There were about 12,000 unemployed people in the region according to the latest figures, but Mr Hawes indicated that number was contextualised by a nearly doubled figure during the COVID-19 pandemic in early 2020.
The latest Jobs and Skills Australia Internet Vacancy Index for June 2024 fell slightly to 5583 positions, compared with the 5800 roles on offer in May.
"While this represents a slowdown, given the figure was nearly 7000 around 12 months ago, workforce demand continues from business and sectors across the region that continue to do well. We know there are also many that are struggling, as consumers and businesses grapple with cost of living challenges, and this would be influencing the drop in demand of businesses placing ads for new employees," Mr Hawes said.
The region's youth market of 15-to 24-year-olds continues to show resilience, with overall unemployment dropping from 6.5 per cent in May to 5.2 per cent in June. There was growth in the number of roles, and most of these were full-time.
"The continued relative strength in employment in the youth market is a healthy sign, and hopefully, the training and experience this cohort is receiving auger well for stepping up into the future," Mr Hawes said.
