Australia’s labour market continued to demonstrate resilience in March 2025, adding 32,200 new jobs despite extreme weather events and rising global economic uncertainty. The national unemployment rate edged up to 4.1%—slightly below expectations—reflecting a rise in labour force participation to 66.8%, according to data released by the Australian Bureau of Statistics (ABS).
Sean Crick, ABS head of labour statistics, noted, “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% for March.” Crick also highlighted a rare weather-driven decline in monthly hours worked, which fell 0.3% despite job gains. “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,” he said.
Employment Hero’s latest data offers further insight into the structure of Australia’s job market, revealing a year-on-year wage growth of 4.7% and employment growth of 5.9%. Casual employment led with a 10.1% annual increase, while part-time and full-time growth remained steady at 2.6%.
Wage growth moderated across all employment types, with casual wages slowing to 3.4% annually—a 12-month low. Construction and trade services recorded the strongest wage gains at 7.8%, while retail, hospitality and tourism lagged at 3.3%.
Commenting on the data, Dwyfor Evans, Head of Asia Pacific Macro Strategy at State Street Markets, said: “The combination of a low jobless rate and a tighter labour force signals a lower commitment from the Reserve Bank towards further monetary accommodation and underpins what remains a relatively strong labour force.”
However, State Street Global Advisors economist Krishna Bhimavarapu warned of external risks: “In the middle of an escalating trade war, Australia’s labour market remains a blessing in disguise. However, a slower growth in China may impact Australia eventually… it is ideal for the Bank to deliver rate cuts to further safeguard Australia’s economy.”
While the Reserve Bank of Australia (RBA) had forecast unemployment to reach 4.4% by mid-year, March’s lower-than-expected figure may complicate its monetary path. Nonetheless, markets still expect the RBA to proceed with 25 basis point rate cuts in May and July, reflecting broader global pressures and a softened inflation outlook.