South Australia's jobs crisis appears to be easing as new figures show it is the only state where unemployment fell in July.
But the state is yet to shake the tag of having the worst jobless rate in the country.
SA's unemployment rate fell to 7.9 per cent last month from 8.2 in June, the Australian Bureau of Statistics revealed on Thursday.
State Employment Minister Gail Gago welcomed the news but said there was still a long way to go for the South Australia's struggling economy.
"Today's figures show that more South Australians are in the job market," she said.
"The participation rate and total employment (are) at their highest levels in two years."
Ms Gago said the state government's main priority was to create jobs, particularly through the advancement of the manufacturing sector.
"We are aware of the economic challenges facing South Australia.
"The state government is continuing with our plan to transition to a new economy, creating jobs for future generations of South Australians.
As the latest jobs figures were released, the SA government also announced $1.26 million of new grants to further drive employment.
"We're targeting those grants into areas where there's the greatest opportunity - areas like childcare, aged care, retail, transport, construction, agriculture," Ms Gago said.
This week the federal government announced a $40 million, 20-year continuous shipbuilding program centred in South Australia, which is expected to support up to 2500 jobs in the future.
Meanwhile a new 100-turbine wind farm in the mid-north announced on Thursday is expected to create up to 250 jobs during construction.
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