WA’s business lobby has sought to blame the McGowan Government for the state’s highest unemployment rate in 16 years, saying its policies had contributed to the result.

The Chamber of Commerce and Industry latched on to figures showing the jobless rate had blown out to 6.9 per cent in March on a seasonally adjusted basis as evidence the Government was asleep at the wheel of the economy.

But Treasurer Ben Wyatt shot back, saying the CCI was misrepresenting the Australian Bureau of Statistics figures and “nay saying” underlying jobs growth.

Camera Icon Ben Wyatt. Credit: Megan Powell

According to Mr Wyatt, the number of people employed in WA actually grew by 744 in March, while internet job vacancies increased by 1.9 per cent.

The Treasurer said the growing unemployment rate was a sign that more people were looking for work rather than wholesale lay-offs and a shrinking economy.

“Our participation rate is the highest in the country, that is a tremendous indicator for future job growth,” Mr Wyatt said.

“While the unemployment figures are notoriously volatile the jobs data on the whole is still positive for WA. It is important to note that today’s figures are being driven by the fact that more West Australians are entering the workforce.”

Almost 8500 full time jobs were lost from the economy during the month, while youth unemployment had risen to 17.1 per cent, the highest level in the country.

Rick Newnham, the CCI’s chief economist, drew a direct link between the results and Government policies it says were behind them.

Chief among these was the increase in the payroll tax rate for big business announced as part of last year’s Budget, followed by what the CCI claims were “the most restrictive retail trading hours” in the nation.

“There are more and more people chasing a job in WA and not enough jobs being created for those people,” Mr Newnham said.

“And that’s reflected in these very worrying unemployment figures.

“The WA Government needs to change its policy settings, reduce the burden on business to create jobs and deregulate retail trading hours so young people can get back into employment.”

Shadow treasurer Dean Nalder said 98,000 people were seeking employment but could not find it, a situation that “flies in the face” of the Government’s pro-jobs mantra.