The state government and opposition have traded blows over the latest workforce statistics, which show a small drop in unemployment and 288,000 Tasmanians in work.
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Monthly employment statistics gathered by the Australian Bureau of Statistics show the state's unemployment rate dropped from 4.1 per cent in November to 3.9 per cent in December.
The national average that month was 3.8 per cent.
Treasurer Michael Ferguson said it was a drastic turn around in the state's fortunes, and although unemployment was above the national average Tasmania was faring better than Queensland, Victoria and the Northern Territory.
"We're just overjoyed that we're seeing 288,000 Tasmanians in work and the unemployment rate at a record low of 3.9 per cent," he said.
"We will not take our foot off the pedal.
"We will never be complacent about our economy and will continue to place a heavy focus on policies that protect and look after our economy and give businesses the confidence that they need to employ."
He said this was driven by government-run initiatives like Jobs Tasmania and the Regional Jobs Hub Network, and strong performances in a number of sectors including forestry, manufacturing, and health.
Mr Ferguson said the unemployment rate had dropped substantially from the 7.9 per cent recorded under the minority Labor government, and there was an embarrassment of riches when it came to vacancies.
"One of the key issues that businesses expressed to me is that we've still got jobs looking for people," he said.
"Back in the Labor-Green days, we had people looking for work, now it's the other way around."
However, Labor treasury spokesman Shane Broad said the government was taking credit for national trends it had no power over.
"After 10 years of a Liberal government, Tasmania's economy has slowed to the point where respected economist Saul Eslake has warned that it looked like we could be going back to where we were in the 1990s," Dr Broad said.
"Treasurer Michael Ferguson is so desperate to pretend things are okay with the economy that he's resorted to claiming credit for national trends.
"The facts show we're still performing well behind the rest of the nation when it comes to unemployment."
Underemployment - the rate of people who are employed but want more hours - increased from 6.7 per cent to 6.8 per cent in December.
The Treasurer said this was not a uniquely Tasmanian phenomenon.
"It's a difficult one to explain," Mr Ferguson said.
"It's reasonably stable, and it is indeed occurring in every state and territory. The people who are filling in the monthly surveys are saying that they'd like to be taking on some more hours.
"Yet our employers are telling us they're desperate for more workers ... There's an opportunity for people to get more hours and we'd encourage them to do that."
Dr Broad said the government had their "heads in the sand" over the figures.
"Michael Ferguson and Jeremy Rockliff need to get their heads out of the sand and stop pretending everything is rosy when it comes to the economy," he said.
"A Labor Government will ease pressure on businesses and households by capping power prices, removing red tape for developments, and making building windfarms easier a priority in our first term of government."