Australia sheds 39,300 jobs in September as part-time employment falls
Key Facts
Employment in Australia fell by a seasonally adjusted 39,300 people in September 2026, according to the Australian Bureau of Statistics, as the central bank prepares for its November monetary policy meeting. The decline defied economists' expectations for an increase of 19,600 people, according to Investing.com. The seasonally adjusted unemployment rate stood at 4.7%, official figures for the same month showed. Investing.com cited Australia and New Zealand Banking Group as saying the report reduced the likelihood of a rate hike, although the bank retained its forecast for another increase in November. In currency markets, the Australian dollar fell 0.3% against its U.S. counterpart following the jobs data, according to Investing.com's coverage.
Job losses were concentrated in part-time employment, which fell by 73,700 people in September, according to the Australian Bureau of Statistics. By contrast, full-time employment rose by 34,400 people during the same month. Total seasonally adjusted hours worked increased by 0.1%, alongside this divergence between the two employment categories. In trend terms, employment posted a monthly increase of 15,700 people, compared with the decline in the seasonally adjusted reading. Sean Crick, head of labour statistics at the bureau, said "a higher proportion of people remained unemployed this September compared with recent years".
The decline extended to labour force participation, which stood at 66.8% in September, according to the Australian Bureau of Statistics. The participation rate had stood at 67.0% in August before falling in the latest monthly reading. The employment-to-population ratio also fell to 63.6% in September, alongside the decline in total employment during the month. That compared with 63.9% in August, according to the bureau's monthly comparison. The underemployment rate rose to 6.3% from 6.2%, accompanying the declines in participation and the employment-to-population ratio in the labour market report.
On an annual basis, the number of people employed in Australia remained 168,300 higher in September, according to the Australian Bureau of Statistics. That increase represented annual employment growth of 1.2%, despite the loss recorded in the latest month. In the business sector, National Australia Bank's confidence index registered -13.00 points in its September survey, according to Investing.com's economic calendar. That compared with a previous reading of -9.00 points in August, as the index fell further into negative territory. The September survey results were published on 13 October 2026, ahead of the next monetary policy meeting in November.
The labour market developments follow the Reserve Bank of Australia's September decision to raise its cash rate target by 25 basis points. The increase took the target to 4.60%, according to the central bank's monetary policy decision statement. The bank attributed persistent inflation risks partly to external and domestic factors related to supply and productive capacity. The factors it identified included disruptions to global oil supplies as part of its explanation for continued inflation risks. It also cited "capacity pressures in the economy" among the domestic factors in its inflation assessment.
The next milestones begin with the release of Australia's consumer price index on 28 October 2026, according to the bureau's official calendar. That will be followed by the Reserve Bank of Australia's Monetary Policy Board meeting, scheduled for 2–3 November 2026. According to Investing.com, ANZ retained its forecast for a rate hike that month despite the weak labour market report. The bank specified an expected increase of 25 basis points in its assessment of the next decision. The Australian Bureau of Statistics is scheduled to publish the October labour market report on 19 November 2026, after the monetary policy meeting.