Unemployment figures paint a mixed picture for the Hunter

The region lost 3700 mostly full-time jobs in June adding to the 10,400 lost in May, but Mr Hawes said the data still suggests the regional labour market remains relatively tight if approaching a very of levelling or softening.

Despite the fall in unemployment in the Hunter Valley, the overall unemployment rate for the region also eased from 3.1 percent to 3.3 percent. This remains well below the rates recorded for NSW, which rose to 3.9 per cent, and Australia, which rose to 4.1 percent.

The Newcastle and Lake Macquarie monthly unemployment rate rose to 2.4 percent, up from 1.7 percent in May, while the rate in the Hunter Valley fell to 4.5 percent, down from 5.1 percent in May.

Mr Hawes said volatility in the participation rate around the region - or the percentage of working age people in the labour force - which was sitting well below the state average despite the more promising unemployment rates comparison, had "masked" the figures to some extent and boded concerning signs ahead.

"The participation rate fell again in the Hunter Valley, from 62.2 percent in May, to 58.1 percent in June and had the rate not dropped, the unemployment would have been worse," Mr Hawes said. "We're continuing to see signs that job seekers are withdrawing from the market outside of Newcastle and Lake Macquarie and we suspect issues like travel, housing and skills and experience mismatch are contributing to this."

There were around 12,000 unemployed people in the region in the latest figures, but Mr Hawes indicated that that number was contextualised by a nearly doubled figure during the COVID pandemic in early 2020.

The latest Jobs and Skills Australia Internet Vacancy Index for June 2024 fell slightly to 5,583 positions, compared with the 5,800 roles on offer in May.

"While this represents a slowdown, given the figure was nearly 7,000 around 12 months ago, workforce demand continues from business and sectors across the region that continue to do well. We know there are also many that are struggling, as consumers and businesses grapple with cost of living challenges, and this would be influencing the drop in demand of businesses placing ads for new employees," Mr Hawes said.

The region's youth market of 15-to 24-year-olds continues to show resilience, with overall unemployment dropping from 6.5 percent in May to 5.2 percent in June. There was growth in the number of roles, and most of these were full-time.

"The continued relative strength in employment in the youth market is a healthy sign, and hopefully, the training and experience this cohort is receiving auger well for stepping up into the future," Mr Hawes said.