OPPOSITION Leader Will Hodgman has accused Premier Lara Giddings of "giving up on jobs" with a new economic forecast tipping unemployment to keep surging.
The National Australia Bank's State Economic Report has predicted the state's unemployment rate will rise to 9.5 per cent next financial year, suggesting "little upside to the near-term outlook".
NAB economist and report author Alex Knight said a jobless rate in double figures was feasible.
"The next year or two will be difficult as we're expecting a softening in the labour market across the nation as a whole," Ms Knight said.
The state's unemployment rate hit 8.6 per cent in August after a rise in every month this year.
Mr Hodgman sharpened his attack on Ms Giddings's economic management, saying more jobs had disappeared under her premiership than any other premier for the past three decades.
Ms Giddings told ABC radio "there is only so much government can actually do" to decrease unemployment - a position Ms Knight supported.
"The federal government has a lot more levers at their disposal in terms of monetary policy and the like to help drive an economy," Ms Giddings said.
Turning the government's focus to jobs in December last year when the unemployment rate was 7 per cent, Ms Giddings said the situation would be "far worse" if she hadn't done so.
Ms Giddings said she was not embarrassed about the figures, but she was embarrassed at Mr Hodgman "talking the state down".
Mr Hodgman said he was involved in helping Prime Minister-elect Tony Abbott build his Tasmanian policy package, which includes a pilot scheme to pay businesses that employ long-term unemployed.
The NAB Economic Report unemployment forecast stands in sharp contrast to Treasury's own figure of 6.75 per cent for 2013-14 and the next three years.
"With Tasmania struggling to remain competitive in the mainland and overseas markets and lower population growth presenting ongoing problems for its household sector, there appears to be little upside to the near- term outlook for this state," the report said.