The dispersion and persistence of Queensland regional unemployment

This study explores the relationship between regional unemployment rates in Queensland over the period 1987(Q4) to 2000(Q3). A variety of techniques are used to investigate the extent and nature of the disparities in the regional unemployment rates. The disparities and persistence of the regional unemployment structure that is uncovered may be either a disequilibrium or equilibrium phenomenon. The aim of this paper is to attempt to determine which explanation is the more appropriate. It is suggested that the results tend to support a disequilibrium rather than equilibrium view. The implications that this may have for regional unemployment policy are discussed.