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Category: Unemployment / States and Territories / Federal - State Issues / Economic Trends / Work

'Catastrophic' WA unemployment rate highest since 2002

Thursday, 15 Dec 2016 12:19:40 | Nicolas Perpitch

The jobless rate in WA has reached 6.9 per cent, although the participation rate is also up. (ABC News: Nic MacBean)

Western Australia's peak business group has joined the Opposition in condemning a sharp increase in the state's unemployment rate, with claims the "unnaceptable" and "catastrophic" result warrants immediate reform.

WA's jobless rate increased from 6.5 per cent to 6.9 per cent in November, reaching its highest level 2002.

However, the state no longer has the highest unemployment in the country, with South Australia leading the way at 7 per cent as the overall national rate edged up to 5.7 per cent.

WA Opposition Leader Mark McGowan blamed Premier Colin Barnett for the spike and said the Liberal Party had failed to plan for the end of the mining boom.

"6.9 per cent is catastrophic. The Government has its head in the sand," Mr McGowan said.

"Mr Barnett thinks everything's okay. It is clearly not okay. That's why we need a change, we need a fresh start, we need a plan for jobs.

"[The Government] failed to diversify the economy. They failed to ensure there was significant financial capacity left from the boom times, for the lean times that followed."

State Development and Transport Minister Bill Marmion dismissed the claims and trumpeted the Government's jobs record as he marked the completion of work to duplicate the Russel Road Bridge and widen a section of Kwinana Freeway in Perth.

"Mark McGowan comes up with willy-nilly statements all the time but he doesn't come up with any factual things of what to do," he said.

External Link: State unemployment data November 2016

Mr Marmion said the two transport projects had created 500 jobs, with a further 300 workers engaged on the Aubin Grove train station.

Federal Employment Minister Michaelia Cash defended her WA Liberal counterparts, saying the Barnett Government's policies had created thousands of jobs.

"[The WA Opposition] said no to all of those policies and the thousands and thousands of jobs that have been created," she said.

Senator Cash said the WA jobs figures were the result of a "transitioning economy", and noted a jump in the workforce participation rate was a very positive sign.

'Urgent policy' changes needed: CCI

But the state's Chamber of Commerce and Industry (CCI) used the jobless figures to again call for changes to payroll tax.

"This unemployment rate is unacceptable," CCI chief executive Deidre Wilmott said.

"It's the highest that it's been since 2002 and it calls for urgent policy announcements by our political parties going into an election."

The CCI wants the current $850,000 payroll tax threshold immediately indexed to the Consumer Price Index , and then increased by $50,000 each year to eventually reach $1.5 million.

The peak group ultimately wants the tax abolished.

AustraliaPlus


 

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