New report warns of continued job losses across SA

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South Australia Blackout
Cars and buses drive in the central business district (CBD) of Adelaide after severe storms and thousands of lightning strikes knocked out power to the entire state of South Australia, September 28, 2016. AAP/David Mariuz/via Reuters

A new report has found that up to 10,000 jobs will be lost in South Australia's construction sector over the next three years amid a decline in investment. SA is still coping with challenges from the end of the mining boom, it notes.

The report prepared for the Civil Contractors Federation also states that the SA economy is expected to continue to underperform. It encourages the state to focus on leveraging key strengths such as the lower cost of living and lifestyle benefits.

SA is also urged to prioritise key sectors like defence and tourism. "Ultimately, the solution to South Australia's economic challenges will involve reversing decades of weak population growth and addressing the relative underperformance in attracting private investment - all of which will take time," the report says.

For CCF chief executive officer Phil Sutherland, the report is alarming but is also a reality check. He said that major political parties in SA must utilise it as a "blueprint to the future.” He added, "With a state election only four months away, the CCF implores the major political parties to heed the warning signs.”

The findings come after the closure of the Holden assembly operations in Adelaide's north. SA has also seen other job losses across the wider manufacturing industries.

Unemployment rate in Australia

Overall, the country’s unemployment rate has dropped to a four-and-a-half-year low at 5.4 percent. It has been the lowest level since January 2013.

At 3,700, the increase was well below the 18,000 gain economists had expected. All of the jobs created were full-time positions. Total hours worked increased.

September’s employment gain was earlier reported at 19,800. It was revised higher to 26,600.

Jobs ads

According to data from jobs website Seek, job ads placed on its platform surged by 16.1 percent in the 12 months to October. Managing Director for Seek Australia and New Zealand Michael Ilczynski said the advertising uplift was fuelled by positive growth across 28 of the 29 industries, Business Insider Australia reports. Seek has revealed that ads have lifted in all Australian states and territories, led by SA, which has recorded the largest annual growth of all states and territories, up 24.5 percent year-on-year.

Increases were also recorded in Australia’s mining states and territories, Western Australia and the Northern Territory. In the Northern Territory, ads grew even faster, logging an increase of up to 21.2 percent from a year earlier.

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