Australia's Employment Unexpectedly Declines in August, Unemployment Rate Remains Stable

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Sep 18 2025

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Source: Reuters

Employment Trends: Australian employment fell by 5,400 in August, with a significant drop in full-time positions, while the jobless rate remained steady at 4.2%, indicating a softening labor market.
Interest Rate Outlook: The mixed employment report did not alter expectations for the Reserve Bank of Australia's interest rate policy, with a likelihood of a rate cut in November being priced at about 75%.
Economic Indicators: Despite the employment decline, leading indicators of labor demand remain strong, with job ads above pre-pandemic levels and positive business surveys, suggesting resilience in consumer spending.
Job Cuts in Banking Sector: Major Australian banks, including ANZ and National Australia Bank, announced significant job cuts as part of restructuring efforts, with ANZ planning to reduce nearly 3,500 jobs.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.