Wagga and the Riverina have seen the number of people on Centrelink unemployment benefits start to drop again, recording 11 per cent falls in April.
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The falling numbers of people on JobSeeker in April came after a month in which the region made no progress in reducing the thousands of extra people who joined the welfare system during the pandemic.
Business NSW Murray-Riverina regional manager Anthony McFarlane said the renewed drop in jobless was a "very positive sign" for the region's economic recovery.
Mr McFarlane said the falling jobless number was partly due to the coronavirus supplement being removed, which at its height effectively doubled Centrelink payments to $1100 a fortnight.
"I think the disincentive impact created by a higher JobSeeker allowance is starting to go away and we are getting more people back into the workforce," he said.
"It's also a positive and healthy sign that businesses in the region have that work available and when we look at the jobs vacancy index, it shows the jobs are there.
"Those figures from the Australian Bureau of Statistics show the number of vacancies is up by 100 per cent on pre-pandemic levels in the Murray-Riverina."
The number of people claiming JobSeeker in Wagga dropped below 3000 for the first time since coronavirus restrictions came into force, with 2676 recipients recorded during April after an 11.5 per cent fall.
Across the Riverina, the number of recipients dropped by more than 11 per cent - a fall of nearly 1000 people - to 5852 recipients during April with Wagga included.
Both Wagga and the Riverina had about 20 per cent more people receiving unemployment benefits than before the pandemic, according to the latest data from the federal Department of Social Services.
Wagga Business Chamber business manager Serena Hardwick said the JobSeeker result was not surprising given the shortage of workers in Wagga for industries such as hospitality and manufacturing.
"Obviously it's a great thing that [the number of people on JobSeeker] is dropping but we would like to see it drop further," she said.
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Ms Hardwick also said the reduction in unemployment payments had helped get people back into the workforce.
"Obviously the extra payments were needed but when we have worker shortages, being involved in the workforce is much more desirable," she said.
"The Wagga economy is performing quite well at the moment and there is a higher level of confidence among businesses and consumers with good agricultural returns and billions of dollars in major capital works coming to Wagga."
Some of the best performing areas were Temora and Griffith, which saw 15 per cent falls in Centrelink recipients, and Wagga's northern suburbs and surrounding small towns with a 14 per cent fall.
Tumbarumba and Cootamundra had the smallest reductions, with 5.6 and 6.5 per cents falls, respectively.
The JobSeeker numbers were the first to be released after JobKeeper wage subsidies paid to businesses were eliminated after being reduced multiple times from a peak of $1500 per fortnight per worker.
"Any downward trend in JobSeeker payments means more people getting into jobs, which can only be a good thing," Riverina MP Michael McCormack said.
"There are more people in work now across the country than there were pre-pandemic and the jobless rate is lower than it was when we came into Government in 2013, which shows the federal government is continuing to get the balance right when it comes to putting in place the right measures for the economy to thrive, as we continue to chart a course back from the economic and health effects of COVID-19..
"The recent Budget places regional Australians at the heart of our national recovery by helping to sustain strong regional communities, create jobs and grow key regional industries."
Mr McCormack said the federal government would continue to monitor the economic recovery and make necessary adjustments to continue to drive unemployment levels down, including in the Riverina and Central West.
"So many local businesspeople tell me each and every day they have positions they wish they could fill," he said.
"The Regional Australia Institute's latest figures show there are 67, 500 jobs available in regional Australia right now."
Labor duty Senator for the Riverina Deborah O'Neill said she applauded the hardworking people and small businesses of the Riverina for driving the improvement in JobSeeker numbers in the region.
"I am concerned, however, that the number remains stubbornly high compared to the nationwide average," she said.
"What the people of Riverina need to restore confidence in the economy is a functioning and efficient vaccine rollout which the Morrison-McCormack Government is incapable of delivering."
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