Distribution of SA2s by unemployment rate
Our latest Small Area Labour Markets (SALM) estimates show that more than three-quarters (76.6%) of Statistical Area Level 2s (SA2s) across Australia recorded an unemployment rate of less than 5%, while just 3.7% of SA2s recorded an unemployment rate of 10% or more.
The number of SA2s with an unemployment rate of less than 5% decreased over the year to the June quarter 2024, from 1,649 to 1,565. At the same time, the number of SA2s with an unemployment rate of 10% or more increased slightly, from 74 in June quarter 2023 to 75 in the June quarter 2024.
Around a third (36.9%) of SA2s recorded a decrease in their smoothed unemployment rate over the year to the June quarter 2024. This is significantly lower than the 78.7% recorded over the year to the June quarter 2023 and is consistent with a softening in labour market conditions that occurred during the second half of 2023 and into 2024.
SALM presents estimates of unemployment and the unemployment rate at the SA2 and Local Government Area (LGA) levels.
Jobs and Skills Australia recommends that SALM users review the ‘smoothed’ SALM data, which are created by applying a four-quarter average to ‘unsmoothed’ SALM data. While the smoothed data will lag actual changes in labour market conditions, they also reduce the high level of statistical variability inherent in small area estimates.
