Australia’s Unemployment Rate Rises to 4.5 Percent, Highest Since 2021

Seasonally adjusted unemployment rose to 4.5 percent in September, up from a revised 4.3 percent in August, according to data released by the Australian Bureau of Statistics (ABS).

There were 34,000 more people unemployed in September than in the previous month.

There was a rise in both men and women seeking work. The number of unemployed males rose by 24,000 to 370,000, while the number of unemployed females rose by 10,000 to 314,000.

The number of employed people also grew, up 15,000 in the same period, but remained slightly below the average for new jobs added over the past year.

“This is the highest seasonally adjusted unemployment rate recorded since November 2021,” noted Sean Crick, ABS head of labour statistics.

“As a result of these increases, the participation rate rose by 0.1 percentage points to 67.0 percent, although this is below the record high of 67.2 percent we saw at the beginning of the year.”

The employment-to-population ratio remained steady at 64.0 percent.

Full-time employment rose by an overall 9,000, due to an increase in full-time employed males by 23,000 and a decrease in full-time employed females by 15,000.

Part-time employment rose by a net 6,000, with females employed up by 19,000, while males employed part-time fell by 13,000.

Hours worked rose by 0.5 percent in September.

Underemployment and Underutilisation Also Up

The underemployment rate rose by 0.2 percentage points to 5.9 percent, though it remains 0.3 percentage points lower than September 2024 and 2.8 percentage points lower than March 2020.

Underemployment refers to people working fewer hours than they would like, in roles that do not fully utilise their skills, or working in a low-paying or unstable job.

The underutilisation rate, which combines the unemployment and underemployment rates, rose by 0.4 percentage points to 10.4 percent. This is 0.1 percentage points higher than September 2024 but 3.5 percentage points lower than March 2020.

Economists say the figures mean another interest rate cut from the Reserve Bank is warranted next month.

Immediately following the announcement, the Australian dollar dropped 0.5 percent against the U.S. to 64.85 U.S. cents, and the three-year bond rate slipped 12 basis points to 3.36 percent.

The September survey reference period is from Aug. 31, 2025, to Sept. 13, 2025.