Australia's jobs market shows strain as unemployment rises

Summarised from 2 outlets · Updated 14 Oct, 18:02 · Archive

Australia's unemployment is expected to hold at 4.6 per cent, its highest in five years, as cost-of-living pressures mount.

Australia's unemployment is expected to hold at 4.6 per cent in September, according to analysts at JP Morgan, marking its highest level since November 2021. The jobless rate has risen by 0.5 percentage points since the start of the year and is already above the Reserve Bank's forecast for 4.5 per cent in the December quarter.

Despite the labour market remaining resilient overall, with 177,000 jobs added since the start of the year, more Australians have been forced to seek additional work to weather stubborn cost-of-living pressures. The Reserve Bank has lifted interest rates four times in 2026 to a 15-year high, while consumer prices have surged by four per cent over the past year. 'Households have been squeezed from two sides this year, with prices and mortgage repayments both rising,' said CEDA head of economics Liam Dillon.

The Committee for Economic Development of Australia's 'misery index', which tracks the sum of inflation, interest rates and unemployment, is back near post-pandemic highs. It is expected to stay well above recent historical averages until at least the end of 2028. The International Monetary Fund projects Australia's unemployment rate will hit 4.7 per cent in 2027.

How it is being reported

• Misery on the march as jobs market slowly unwindsUnemployment is expected to hold around the highest level in five years as stubborn cost-of-living measures force more Australians to find extra work.Perth Now · 14 Oct, 17:33
• Misery on the march as jobs market slowly unwindsUnemployment is expected to hold around the highest level in five years as stubborn cost-of-living measures force more Australians to find extra work.The West Australian · 14 Oct, 17:33

In this story: Australia · Committee for Economic Development of Australia · Reserve Bank · JP Morgan · International Monetary Fund · Liam Dillon

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