There were almost 50 people receiving an unemployment payment for every job advertised in Tasmania outside of Hobart in June, giving the state one of the tightest job markets in the country.
The data released to Labor from the Department of Social Services was matched with jobs data for the month, which came after the strictest coronavirus lockdown measures were lifted in Tasmania.
Labor sought to use the data to pressure the government into retaining the JobSeeker and JobKeeper rates, fearing the problem was unlikely to have eased since.
TasCOSS chief executive officer Adrienne Picone said "holistic" solutions must be developed.
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"Until there are more jobs available for Tasmania's increased number of job seekers, supports must be maintained at the current level to enable retraining and reskilling as we rebuild both socially and economically," she said.
"Solutions include improving access to reliable, affordable transport that can get job seekers to services, training and work; addressing cultural barriers like prejudice, stigma and exclusion; and improving adult and digital literacy levels, dental, physical and mental health."
TasCOSS was supportive of the state government's strategic growth ministry announced in January, which it believed could be crucial in tackling the gap between jobs advertised and the number of jobseekers.
From the end of September, the federal government plans to reduce the JobSeeker rate from $1110 to $810 per fortnight, but increase the amount a person can earn through employment before it affects their payment. JobKeeper was planned to be reduced from $1500 to $1200 per fortnight for full-time workers.
Lyons Labor MHR Brian Mitchell said the jobs market was unlikely to have improved in Tasmania since June, meaning it was essential to "not strip away support too soon".
"This is the wrong time to take away that support when all indications are that things are getting worse, not better," he said.
"Both of these should be retained until things improve. We're pleased to support the government with the extension of JobSeeker and JobKeeper, but we think it's a mistake to strip them back to the extent that they want to do that."
Bass Liberal MHR Bridget Archer said she was still of the belief that the rate of JobSeeker should not decrease to pre-COVID levels, having written to the Prime Minister and Social Services Minister on the matter.
"These conversations are ongoing and I do think further consultation is needed to look at what that final increase would be but, as I have said previously, I don't think it would be reasonable to go back to the pre-COVID rate," she said.
"There is no doubt we have a long road ahead of us, however, job creation is squarely at the centre of our business-led economic recovery plan as we work to meet the challenges of all communities throughout Australia."