‘Stable on the surface, but evolving beneath’: Unemployment rate shows slight increase to 4.1%

New data released today (17 April) by the Australian Bureau of Statistics (ABS) has revealed that the unemployment rate increased slightly to 4.1 per cent.

In the March 2025 period, the adjusted unemployment rate increased slightly to 4.1 per cent – up from 4 per cent in February, according to data from the ABS. Although the data failed to reveal immense movement, the ABS highlighted that employment as a whole over the past 12 months has grown 308,000 people, or 2.2 per cent.

“With employment increasing by 32,000 people and the number of unemployed increasing by 3,000 people, the unemployment rate rose slightly to 4.1 per cent for March,” said Sean Crick, ABS head of labour statistics.

“The employment-to-population ratio remained at 64.1 per cent in March, while the participation rate increased slightly to 66.8 per cent.”

An interesting finding in the data was a decrease in monthly hours worked, which fell for a second month in a row – highlighting the implications of recent natural disasters such as Cyclone Alfred.

“A higher than usual number of people reported working reduced hours this month due to bad weather, coinciding with ex-Tropical Cyclone Alfred and other major weather events in New South Wales and Queensland,” said Crick.

All in all, the trend unemployment rate has continued to remain within a relatively narrow range of 3.9 and 4.1 per cent for the past 16 months.

Speaking on the current state of the labour market throughout Australia, Ben Thompson, chief executive at Employment Hero, said: “This month’s data shows a labour market that’s stable on the surface, but evolving beneath.”

“Employers are still leaning into casual hiring and younger talent as they seek flexibility. While inflation has been easing in recent months, the ASX was taken on a ride in recent days, and we could see this more directly impact Australian businesses in the months ahead – especially for trade-exposed sectors and those reliant on global supply chains.”

“Employers may adopt an even more cautious stance on hiring and wage increases as cost pressures mount.”

Data from Employment Hero also revealed hiring trends throughout the labour market, with Gen Z candidates soaring. According to the research, young workers are landing part-time and casual gigs, with employment up massively for 14- to 17-year-olds, and 18- to 24-year-olds are also climbing in both pay and hours.

This has, of course, affected the hiring rates for older workers (55+), who are seemingly falling behind with a 1.4 per cent decrease in employment year on year.

Touching on the recent trade turmoil spurred by US President Donald Trump’s tariffs, Thompson called on both employees and employers to be proactive in ensuring their financial security during unpredictable times.

“Superannuation balances have already taken a hit from recent trade turmoil, so employees may need to think more proactively about voluntary contributions and investment diversification. Stability in the job market is one thing – but employers and workers should also be proactive to ensure financial security down the road,” said Thompson.