One key concern is the rise in underemployment. The share of people who have a job but want more hours climbed to its highest level in more than a year. At the same time, the number of people actually employed fell by more than 21,000. Even the overall labour force shrank, with fewer Australians either working or looking for work.
Another worrying trend is the jump in youth unemployment. The jobless rate for people aged 15 to 24 rose above 10 per cent, suggesting young workers are being hit harder than most as businesses slow their hiring plans. Full-time positions took a sizeable hit, falling by 57,000 in November. Part-time roles increased and offset some of the damage.
Economists say these developments reflect a labour market gradually losing momentum. Employment has grown over the past year, but not fast enough to keep up with population growth. Job advertisements are also trending down, another sign that businesses are preparing for slower economic conditions.
The RBA kept interest rates steady at 3.6 per cent at its final meeting of the year, but officials made it clear that they aren’t ruling out future increases. Several economists believe the central bank will wait for clearer trends before making any moves.
Others, however, think rate hikes could return in 2026 if inflation picks up again and the job market remains tight overall. While the labour market appears to be softening, it hasn’t weakened enough to fully ease pressure on prices. Productivity has been slow, business capacity is stretched, and unit labour costs remain high — all factors that can keep inflation elevated.
For everyday Australians, the effect of these shifts is real. New analysis showing that earning well above $100,000 is now needed to rent comfortably in any major city. If wages don’t keep pace and the job market keeps cooling, financial pressures may deepen.
The RBA will get one more set of employment numbers before its February meeting. Until then, uncertainty will continue to hang over both workers and the economy as a whole.
Contact Accountancy Insurance
We would love to hear from you.
About Accountancy Insurance
Thousands of accounting firms offer our tax audit insurance solution, Audit Shield to their clients.
Find out why.