Leading economists believe interest rates on the South Coast and Southern Highlands will continue to come down this year, following an increase in the unemployment rate.

Nationally 27-thousand jobs were lost in June pushing the jobless rate up to 5-point-2 per cent, and some analysts believe it will rise further.

In some areas locally including Nowra Bomaderry it is twice that level.

South Australia lost the most jobs, followed by Victoria and New South Wales while the mining states of Queensland and Western Australia put on workers At South Nowra, the Boral owned Dowell Windows has announced the closure of its manufacturing operations with the loss of more than a dozen jobs.

Stephen Koukoulas from market economics says it is logical to expect an interest rate fall.

Michael O'Connor from the CMFEU which represents workers in local industries like the Shoalhaven Paper Mill says the latest jobless figures should be a wake up call for mining magnates to hire more Australians.