Australia’s Unemployment Rate Drops to 4.3% as Labour Market Holds Firm

Australia’s unemployment rate fell to 4.3% in October, down from 4.5% in September, reflecting a steady labour market despite global economic challenges.

According to the Australian Bureau of Statistics (ABS), employment rose by 42,200 while unemployment declined by 17,000, returning the rate to its mid-year level after a brief rise in September.

Economists believe this improvement has eliminated the chances of a near-term interest rate cut, as the Reserve Bank of Australia (RBA) prepares for its final meeting of the year on December 8–9.

“If there was ever the slightest chance the RBA could have played Santa with a surprise rate cut, today’s labour report wiped it out,” said David Bassanese, chief economist at BetaShares.

Treasurer Jim Chalmers hailed the result as a “very positive sign,” noting that 1.2 million jobs have been created under the current government, including 55,000 new full-time jobs in the last month alone.

The participation rate and employment-to-population ratio both remained steady at 67% and 64% respectively, while underemployment fell to 5.7%.

Economists caution, however, that while the jobs market remains strong, employment growth has been slowing, with healthcare and education sectors — key drivers of post-pandemic hiring — showing reduced activity.

With property prices rising and inflation remaining sticky, analysts agree that interest rates are unlikely to be cut anytime soon. The RBA forecasts unemployment to stabilise near 4.4% through 2025.