The Tasmanian Council of Social Services reported an increase in underemployment in August.

Organisation chief executive Tony Reidy yesterday said the situation was of ‘‘serious concern’’.

He explained that the global financial crisis had seen a drop in employment, and although businesses were still hiring, they were often doing so on a casual or part-time basis.

‘‘We now have the highest rate of underemployment in Australia,’’ he said.

‘‘Many households have one person working but can’t gain sufficient hours of work to lift them out of the poverty trap.

‘‘These people are often in situations where they can’t access concessions or discounts but are earning insufficient money to meet the costs of living, and with the added financial pressures of Christmas, it’s nearly impossible to meet them.’’

The Salvation Army’s Anita Reeve said the organisation had seen a number of new families in the lead-up to Christmas.

‘‘People are losing hours and can’t cope,’’ she said.

‘‘People are left with the choice between eating and paying the rent.’’

Ms Reeve said the number of young men living alone accessing services had also risen.

‘‘You’ve only got to look at Tasmania at the moment and see for young men who are unskilled it’s impossible (to get work),’’ she said.

Mr Reidy said organisations had told the peak body resources were not sufficient to meet demand.

‘‘This is pushing more Tasmanians into poverty,’’ he said.

‘‘As the economy strengthens, we would like to see employers invest in people by providing jobs with sufficient payment.’’