New figures from the Small Area Labour Markets (SALM) report continue to reflect gradual softening labour market conditions.
In the September quarter 2024, nearly three quarters (74.7%) of Statistical Area Level 2s (SA2s) reported unemployment rates below 5%, down from 80.2% in the September quarter 2023. Moreover, the share of SA2s with unemployment rates above 10% rose to 4.1%, up from 3.4% a year ago, reflecting pockets of increasing economic strain.
Over the past year, the number of SA2s with unemployment rates under 5% fell from 1,638 in the September quarter 2023 to 1,526 in the same quarter of 2024. Meanwhile, the number of areas facing unemployment rates of 10% or higher climbed from 70 to 83.
Fewer regions are seeing improvements in their labour market conditions. Only 30.4% of SA2s recorded a drop in their smoothed unemployment rates over the year to September 2024, down significantly from 67.3% in the previous year.
SALM data provides valuable insights into local labour market dynamics at both the SA2 and Local Government Area (LGA) levels. Users are encouraged to focus on the ‘smoothed’ estimates, which average data across four quarters to reduce statistical noise. While this approach slightly lags real-time changes, it offers a clearer view of underlying trends in smaller geographic areas.
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