Jobs growth stalls
The labour force survey for the month of August 2025 was disappointing, with employment falling by -5,400, seasonally adjusted, including a -40,900 fall in full-time employment.
Hours worked also contracted by -0.4 per cent over the month.
The 3-month average for employment growth fell to just +7,700, now tracking far below the level consistently required to hold the unemployment rate down.
There was also a significant decline in the participation rate in August, however, from 67 per cent to 66.8 per cent, and as such the unemployment rate held at 4.24 per cent, seasonally adjusted, though the trend has evidently been running higher for most of the past three years.
Somewhat surprisingly, the underemployment rate dropped back to just 5.7 per cent, well below the 6½ per cent seen a year earlier.
Overall, though, this was a pretty weak result, with little concrete evidence to date that private sector employment growth is going to take over adequately from the public sector.
The Aussie dollar initially pulled back from 66½ US cents to around 66.35 cents on the release, reflecting the weaker than expected news.
Financial markets are pricing a 25 basis points interest rate cut for November, and a further cut in 2026.
---
1. Download our property buying guide
Download our free property buying guide here.
You can also check out a few of our recent property purchases here.
Get in contact with us today if strategic property investment is your thing.
2. Subscribe to our Top 10 Podcasts for Investors
Listen in to our podcasts
The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.
And our popular Low Rates High Returns Show also remains available on Spotify.
3. Subscribe for my free daily blog
Subscribe for my free daily blog with more than 4 million hits here.
You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 15,300 followers.
By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.
My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - check out our free Buy Right podcast series here.
4. Work with me privately
For a limited time you can book in a free diagnosis call with me here, so book in a call today.
