Australia’s unemployment rate rises to 4.5 percent in September

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Australia’s jobless rate climbed to 4.5% in September, up from 4.3% in August, marking the highest level since November 2021, according to new data.

The number of unemployed Australians rose by nearly 34,000, while total employment increased by 14,900, as more people entered the workforce. The participation rate lifted slightly to 67%.

Economists say the data confirms the labour market is cooling, with job growth no longer keeping pace with population growth.

“Employment demand has clearly slowed,” said BetaShares chief economist David Bassanese, adding that the job market can “no longer be described as tight.”

Some economists believe the slowdown could push the Reserve Bank to cut interest rates next month, though others argue the current cooling remains gradual, not severe.

Indeed’s Callam Pickering noted that employment growth in 2025 has been modest — just 116,000 jobs so far this year, compared with 323,000 during the same period in 2024.

Despite the rise in unemployment, Treasurer Jim Chalmers said the job market remains resilient, with unemployment still low by historical standards.

Experts say the RBA will likely revise its forecasts in November, as the latest figures align with earlier predictions that unemployment would reach 4.5% by the end of 2025.

Australia’s labour market, they agree, is cooling — but far from collapsing.

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