Employment number falls by 53k, yet unemployment rate steadies

New data released today (20 March) by the Australian Bureau of Statistics (ABS) has revealed that employment numbers have decreased by 53,000 over the February period.

In the February 2025 period, the adjusted unemployment rate remained steady at 4.1 per cent, according to data from the ABS. Despite this lack of movement, the ABS displayed that employment fell in February, citing “fewer older workers returning to work”.

“With employment falling by 53,000 people and the number of unemployed falling by 11,000 people, the unemployment rate remained at 4.1 per cent,” said Bjorn Jarvis, ABS head of labour statistics.

“Fewer older workers returning to work in February contributed to the fall in employment this month, with lower levels of employment in the older age groups in February 2025 compared with 2024.”

“This follows higher levels of employment in these age groups in recent years, particularly in 2024, alongside growth in the employment-to-population ratio over the last few years. In contrast, we continue to see growth in employment for people aged between 15 and 54 over the year,” said Jarvis.

Touching on the data and employment growth, Ben Thompson, chief executive at Employment Hero, said: “Although employment growth has eased from previous double-digit highs to 5.7 per cent YOY, we’re still seeing steady gains across jobs, wages, and hours worked, suggesting the market is shifting from volatility to stability – good news for both employers and job seekers.”

“Casual employment remains the strongest driver of job growth at 10.2 per cent YOY, reflecting businesses’ need for flexibility amid economic uncertainty. At the same time, full-time employment is holding firm, and wage growth – though slowing – remains well above inflation in most industries.”

“Plus, first-time jobseekers and uni grads are finally catching a break after a rocky few months, with Gen Z leading all age groups in wage and job growth.”

Relating to the Reserve Bank’s recent rate cut, Thompson said that an increase in business confidence may lead to more Aussie employers being emboldened in their hiring decisions.

“With the Reserve Bank’s recent rate cut and consumer confidence at a three-year high, we may see businesses gain more confidence in hiring decisions in the months ahead. The labour market is still adjusting, but the overall trend is one of resilience and cautious optimism as we move further into 2025.”