Distribution of SA2s by unemployment rate
Our latest Small Area Labour Markets (SALM) estimates show that more than three-quarters (77.6%) of Statistical Area Level 2s (SA2s) across Australia recorded an unemployment rate of less than 5%. Meanwhile 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 slightly over the year to the March quarter 2024, from 1,614 to 1,584. This was almost entirely offset by an increase in the number of SA2s with an unemployment rate of between 5% and 6.9%, from 220 to 249. The number of SA2s with an unemployment rate of 10% or more stood at 76 in both the March quarter 2023 and the March quarter 2024.
Nearly half (47.8%) of SA2s recorded a decrease in their smoothed unemployment rate over the year to the March quarter 2024. This is significantly lower than the 84.1% recorded over the year to the March quarter 2023 and is consistent with the slowing in labour market conditions that occurred during 2023 and into early 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.