New government figures show that Wagga had 3240 people receiving JobSeeker unemployment payments from Centrelink during December, down from a peak of 3750 people in the month of May 2020.

Despite a seven-month streak in which Wagga continually reduced its numbers of people on welfare, there were still about 1000 more people on unemployment payment than in the period before coronavirus.

Across the Riverina, 7026 people received unemployment payments during December, down from a peak of 7850 in July but still significantly higher than the 4858 people in pre-pandemic months.

Riverina MP Michael McCormack said the government's $507 billion support and stimulus measures were "making such a difference" across the region and the nation.

"The local economy continues to show signs of recovery, which can only be good news for the Riverina, however, I must stress we still have a long way to go as we recover from the economic impact of COVID-19," he said.

"The local figures are reflective of the national figures, where the unemployment rate in Australia fell by 0.2 per cent to 6.6 per cent. This is still above the 5.2 per cent recorded in March."

The Centrelink figures suggest than the level of unemployment and underemployment in Wagga during December last year was nearly 45 per cent higher than in December 2019.

Business NSW Murray Riverina regional manager Anthony McFarlane said the dropping number of people on welfare in the Riverina was "positive" and in line with growing business confidence figures from the region.

"If you compare the reductions in JobSeeker, the Riverina has outperformed the national average; nationally it has dropped 9.5 per cent and the Riverina has dropped 11.7 per cent," he said.

Mr McFarlane said business chamber surveys on why organisations could not find staff with the right skills had revealed "a concern that JobSeeker is too high in certain industries".

"A concern that has been raised is that applicants don't have the right skills or qualifications but we are also hearing that the JobSeeker rate is too high and people don't want to work," he said.

The figures also suggest that the economic recovery has been uneven, with North Wagga, Estella and Boorooma residents receiving 119 per cent more unemployment payments than before the pandemic.

An area combining Gobbagombalin, Ganmain and Coolamon, Lockhart, The Rock and Uranquinty was receiving 70 per cent more unemployment payments than before March 2020.

Central Wagga, Ashmont, Moorong, San Isidore, Flowerdale and Kapooka showed the city's best signs of recovery, with payments being 32 per cent higher.

Junee and Tumbarumba has two of the slowest signs of recovery across the Riverina, the the level of unemployment payments being 45 and 53 per cent higher, respectively.

"It would be impossible to have all areas of our region, or indeed the whole nation, recover at a universal rate, however, it is important to note that these areas are still on a positive trajectory," Mr McCormack said.

Over the weekend, Labor opposition leader Anthony Albanese called on the government to continue "target support" in the form of additional unemployment payments and wage subsidies rather than stopping both policies in March.

"We all know there are parts of the economy that are still affected by the pandemic, like tourism and hospitality," he said.