TOWNSVILLE has become Australia’s jobless capital, with no other city or town matching our unemployment rate of 12.4 per cent.

Figures from the Australian Bureau of Statistics reveal in March there were 13,100 people looking for work in the city, the highest number since 2003.

The unfolding crisis is set to thrust Townsville into the forefront of a federal election campaign that will run until July.

The news comes just a day after the city scored a major coup in luring the Cooperative Research Centre for Developing Northern Australia.

Economist Colin Dwyer said the figures were the worst recorded in Townsville for 13 years.

“The total Townsville regional workforce has dropped 6100 people as families make the tough decision whether to leave Townsville region or stay,” he said.

“The total labour force is 105,800. Townsville has now lost a notional 20,300 in the year to March — that’s an enormous 18 per cent of regional jobs. It’s a worrying trend and I would say these March figures are starting to reflect job losses from Queensland Nickel because that’s when Yabulu closed down.”

Mr Dwyer said the city needed action from both government and the private sector.

“But we also have to help ourselves out and encourage more investment from business,’' he said.

“It is well past the time for action in this less-than-marginal seat of Herbert and it is well past the time for action across North Queensland.”

Mayor Jenny Hill said she hoped the new figures would send a message to politicians as an election looms.

“The CRC announcement is extremely timely, but we need governments to step up with greater investment in the region to get people back in jobs,” she said.

“You’d have to go back a long way to find the unemployment rate as high as it is now, it’s a big concern.

“There has never been a better time for State and Federal governments to invest in big infrastructure projects that will create jobs and provide a desperately needed stimulus for our community.”

U2E People managing director and Northern Fury chairman Rabieh Krayem said there was light at the end of the tunnel.

“We are in a perfect storm really, there’s no doubt the town is doing it tough,” he said.

“Things might look a bit tough at the moment but there’s opportunities there for those who can think outside the box.

“People have got to look at where jobs are and the industries involved.’’

Mr Krayem said many workers in the city were still in transition.

“There are jobs in health and support services, with Townsville one of the pilots of the National Disability Insurance Scheme,” he said.