Bunnings is planning to open 20 new stores in Queensland, with Premier Campbell Newman saying it shows confidence is returning to the state’s economy.

Home improvement retailer Bunnings will help repair Queensland’s unemployment rate with an $810 million expansion.

Another 20 stores will be built in five years, including an upgrade to its original store in Burleigh Heads which was built 15 years ago.

Nearly 6000 people will be employed in the construction phase and there will be 2500 permanent positions.

Premier Campbell Newman opened the chain’s new 35,000-square-metre distribution centre in the Port of Brisbane on Thursday.

“(The) jobs are just what we need and it is a testament to the way this state is moving forward and we appreciate the investment.

“I know there will be a lot of spin offs from that as well, I’m sure there will be a multiplier effect.”

Last week, Queensland’s jobless rate for January was revealed to be 6.1 per cent, its highest since June.

Th national jobless rate of 6 per cent was the highest since July 2003.