Payroll jobs sliding in Tasmania as lockdown crunches NSW

Australian Bureau of Statistics estimates based on payrolls suggested Tasmania shed 0.5 per cent of payroll jobs in the first fortnight of August and 0.7 per cent in the month from July 17.

That was nothing like the lockdown-driven carnage in New South Wales, which shed 5 per cent of payroll jobs in the month from July 17, including 1.2 per cent in the first half of August.

Victoria fared better despite its own lockdown, shedding 1.7 per cent of payroll jobs in the month.

Queensland dropped 1.9 per cent in the month and the nation 2.4 per cent, including 0.7 per cent in the first two weeks of August.

ABS head of labour statistics Bjorn Jarvis said New South Wales, Queensland, the ACT and Victoria had the biggest losses of payroll jobs in percentage terms in the first two weeks of August.

"These four states and territories had lockdowns for either all or part of the first half of August, in addition to existing restrictions and border closures across the country," he said.

Two sectors heavily reliant on freedom of movement - accommodation and food services and arts and recreation services - had the biggest job declines in the first half of August.

They shed 4.4 per cent of jobs and and 3.6 per cent respectively.

Wages paid decreased by the most in accommodation and food services (7.1 per cent), rental, hiring and real estate services (5.8 per cent) and arts and recreation services (5.5 per cent).

Small businesses (under 20 employees) took the bulk of the damage during the fortnight, cutting 3.7 per cent of jobs.

Medium businesses (20-199 employees) lost 0.8 per cent of jobs.

Bigger businesses with 200 employees or more actually grew employment, adding 1 per cent.

Tasmania's recent losses did not erase overall jobs growth in the last year.

The ABS estimated Tasmanian payroll jobs increased by 3.8 per cent in the year since August 15, 2020.

National jobs were up by 1.6 per cent in that period and only New South Wales had a negative annual result, shedding 4.9 per cent of payroll jobs.

The Reserve Bank expects economic recovery to resume, but not before an increase in unemployment.

"The recovery in the Australian economy has ... been interrupted by the Delta outbreak and the associated restrictions on activity," RBA governor Philip Lowe said on Tuesday.

"GDP (gross domestic product) is expected to decline materially in the September quarter and the unemployment rate will move higher over coming months.

"While the outbreak is affecting most parts of the economy, the impact is uneven, with some areas facing very difficult conditions while others are continuing to grow strongly.

"This setback to the economic expansion is expected to be only temporary.

"The Delta outbreak is expected to delay, but not derail, the recovery.

"As vaccination rates increase further and restrictions are eased, the economy should bounce back."