Tasmania's lack of jobs growth despite a strong economy has banking chief Melos Sulicich scratching his head.
"It is surprising that employment in Tasmania is line-ball with a year ago at 250,000 people as the economy has been growing," the MyState Limitedmanaging director and chief executive said.
"This may reflect the changing Tasmanian economy as sectors including education, healthcare and scientific services have grown, while areas such as public administration and mining employ fewer people."
He said Tasmania had added nearly 20,000 jobs in the past decade, but its labour participation rate remained lower than in the rest of Australia.
MyState's latest Tasmanian Economic Update, released on Thursday, showed Tasmania's trend terms unemployment rate in September of 6.4 per cent was high relative to other states and above the national rate of 5.3 per cent.
MyState said Tasmanian employment decreased by 0.1 per cent in the year to September 30, while national employment grew by 2.4 per cent.
It said the state economy had continued to reach new heights, including a record $8.7 billion in state final demand (a measure of economic activity) in the June quarter.
"Tasmania's state final demand growth rate was 4.1 per cent for the year to June 30, 2019, exceeding the national average growth rate of 1.7 per cent," MyState said.
"State final demand has risen every quarter since June 2016, with the latest update completing 13 consecutive quarters of growth."
Even so, MyState noted household consumption - which comprised 57 per cent of state final demand - had been slowing.
It grew by just 1.2 per cent annually.
Private sector investment increased by 7 per cent annually.
MyState said that was well above the national average, as was government sector spending on Tasmanian goods and services.
Mr Sulicich said the state economy was continuing to perform well, and the residential housing market was particularly strong.
"Hobart and regional Tasmanian residential housing's short time on market, coupled with growing residential construction, demonstrates the positive demand for housing and a shortage of housing in the state," he said.
"The construction sector remained buoyant and the total value of construction work increased, with Tasmania's 16 per cent year on year growth to June 30, 2019, the largest increase for any state."
MyState said housing affordability continued to attract residents from interstate and overseas.
Retail sales increased by 3.1 per cent in the year to September 30.
Spending on food accounted for 46 per cent of the growth.