Department of Social Services data showed that the number of people claiming Centrelink payments in Wagga surged by 6.5 per cent during August, which included two weeks when most residents were confined to their homes.

Across the Riverina the lockdown has reversed the trend that has seen at least some people stop claiming JobSeeker payments each month since July last year.

The number of people claiming unemployment payments is now trending up towards the 6000 level for the first time since March.

The JobSeeker figures suggest that Central Wagga and Ashmont suffered the worst apparent job losses during August, while an area including East Wagga, Kooringal, Tatton, Lake Albert and Gumly Gumly appeared the least affected.

Riverina MP Michael McCormack said the demand for regional jobs in previous months suggested that the economy would continue to recover as restrictions eased again.

"Until we get to the other side of the COVID-19 pandemic, the economic figures for regional NSW will likely be reflective of the COVID situation at that particular point in time," Mr McCormack said.

"Prior to the lockdowns in regional NSW, the Regional Australia Institute reported in July there was a record 69,700 job vacancies across regional Australia and, as we come into what is appearing to be a bumper harvest season and once we get to the 70 and 80 per cent targets announced as part of the NSW government's COVID recovery plan, I would expect to see economic conditions improve in regional NSW.

"The federal government continues to put the right measures in place to continue to build the economy and respond proportionately to what is a very fluid situation, as well as support those who need it, including through the COVID-19 disaster payment for those workers affected by public health orders and through the usual temporary JobSeeker safety net."

Deputy Premier John Barilaro announced on August 14 that all of NSW would go into lockdown as part of the efforts to contain the COVID-19 Delta variant.

After an extension last month, the lockdown ended across much of NSW, including Wagga, on September 11.

Some local government areas remain under stay-at-home orders, including the Hilltops LGA around Young, due to ongoing transmission.

Labor Senator Deborah O'Neill said the lockdown and wider restrictions had caused serious impacts on regional communities and it was being made worse by the federal government's "failures" during the vaccine rollout.

"As the Duty Senator for the Riverina it really concerns me that there are still thousands in the community who are still relying on JobSeeker payments, and that payroll jobs have fallen by as much as 2.4 percent," Senator O'Neill said.

The Morrison Government can try to spin this however they like, but there is no denying that this situation is the direct impact of a failure of the Prime Minister to do the two critical things that all Australians needed from him - to get the vaccination right, and to make sure quarantine didn't leak.

"What was former Deputy Leader McCormack actually doing when the LNP failed the country?"

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