Northern businesses are reasonably positive about the state’s economy despite having the highest unemployment in the state, a survey by the Tasmanian Chamber of Commerce and Industry (TCCI) found.
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The TCCI’s Tasmanian Survey of Business Expectations for the final quarter of 2016 found Northern businesses had a positive view of the local economy, with low expectations on the Australian economy.
It comes after a gradual slump in business confidence over 2016, which Tasmanian economist Saul Eslake previously attributed to natural disasters over the year and the energy crisis.
The results compared to the North-West’s generally neutral view, and the South’s positive view.
All regions had a reasonable expectation there would be no change to the Tasmanian economy over the next quarter, while they didn’t expect the climate to get any weaker.
The unemployment rate remained the highest in the North, with November 2016 data from the Australian Bureau of Statistics showing a 7.7 per cent unemployment rate.
This compared to 6.4 per cent unemployment in the South, and 5.8 per cent unemployment in the North-West.
Participation showed similar trends, with the highest percentage of the working age population employed in the South, followed by the North and North-West last.
Annual population growth was the slowest in the North-West, which experienced negative growth, followed by the North, and the South with the strongest growth.
“The challenge in Tasmania is to improve the employment environment. It is a long-term problem, which will require long-term solutions,” TCCI chief executive Michael Bailey said.
Launceston Chamber of Commerce executive officer Jan Davis said the survey results were good news, but welcomed them cautiously.
“There will need to be a concerted effort from both state and federal governments to support private sector activity and investment if this level of business positivity is to be realised.
“This is particularly so in the North of the state, Ms Davis said.
She said developments such as the University of Tasmania transformation, CH Smith redevelopment and Silos project would help solidify business expectations.
“As these projects come on line, we should expect to see some improvement in actual economic measures.”
