JobKeeper's end casts shadow over Newcastle and Hunter job growth figures

Regional labour force data released on Thursday showed an estimated 190,600 people were considered to be employed in the area in February, compared to 181,000 in January.

The number of employed is about 4.4 per cent less than in February last year before massive job losses occurred nationwide due to the COVID-19 outbreak and government restrictions.

The ABS cautioned that Newcastle and Lake Macquarie's unemployment rate of 4.5 per cent was statistically unreliable. It was listed as 7.6 per cent in January. Newcastle's workforce participation, the number of people in work or actively looking for it, rose by 3800 in February to 199,000.

The Hunter Business Chamber welcomed the improvements in regional unemployment levels but warned they could prove short-lived with JobKeeper due to end on Sunday.

The end of the federal wage subsidy scheme has been tipped to result in between 100,000 and 250,000 job losses nationally.

"We hope that the impact of JobKeeper ending is minimal and that most businesses in our area are now in a position to transition off the scheme, if they haven't already," Hunter Business Chamber CEO Bob Hawes said on Thursday.

"But the reality is that the loss of the subsidy will put a financial squeeze on businesses that are still recovering from COVID and reducing their payroll may be the only way for them to stay afloat.

"Some of those businesses may also be contending with deferred rent or loan payments falling due, putting added pressure on their operating budgets."

Job numbers were more steady in the Hunter Valley, slightly falling to 130,500 in February from 131,100 in January. Similarly, the unemployment rate of 3.5 per cent there was deemed statistically unreliable.

The national unemployment rate dropped 0.5 per cent to 5.8 in February. Youth unemployment was 12.9 per cent, a 1.1 per cent fall.

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