Extra 32,000 Jobs Added, But Australia’s Unemployment Rate Still Inches Up

Meanwhile, underemployment has only improved slightly over the past year.

This picture taken on April 15, 2025 shows people walking among the high-rise buildings in Sydney's central business district at the end of office hours in Australia. Saeed Khan/AFP via Getty Images

Australia’s unemployment rate inched up to 4.1 percent in March, rising from 4 percent the previous month, despite a gain of 32,000 jobs.

The increase was due to a larger rise in the number of people looking for work, with 3,000 more Australians counted as unemployed, according to new seasonally adjusted figures from the Australian Bureau of Statistics (ABS).

While the monthly rise in the jobless rate may raise eyebrows just weeks out from the federal election, trend data shows the labour market remains largely stable.

Underemployment Remains Flat

The underemployment rate meanwhile held steady at 5.9 percent, continuing a downward trend that has seen a slight improvement since the pandemic.

It’s now 0.6 points lower than a year ago and almost 3 points below March 2020.

However, hours worked fell 0.3 percent in March, declining for the second consecutive month.

“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 Sean Crick, head of labour statistics at the ABS.

Chalmers Says Economy on the Up, Opposition Says No

Employment rate has been a key election issue.

In back-to-back debates Treasurer Jim Chalmers said that under Labor, unemployment was low, inflation was down, real wages were rising, and interest rates were starting to come down.

“While there are still challenges in our economy and people are still under pressure, we still have the lowest average unemployment of any government in the last 50 years.”

Australian Labor Treasurer Jim Chalmers at Parliament House in Canberra, Australia on March 24, 2025. AAP Image/Lukas Coch

In response, Shadow Treasurer Angus Taylor has repeatedly said Australians would continue to go backwards under Labor’s economic management.

“Whether it is living standards, productivity, or real wages—if Labor’s plan continues, Australians will be poorer for a decade.”

Meanwhile, recruitment platform JobAdder’s recent report claimed a 44 percent increase in job applications over the past year, making job hunting more competitive.

At the same time, job creation fell by 5.4 percent in 2024, leading to more candidates competing for the same roles.

Over the last three months of 2024, recruitment agencies saw an average of 41 applicants per job, while the number of jobs per agency declined by 5.6 percent, marking the lowest point of the year.

JobAdder CEO Martin Herbst noted a change in recruitment strategies.

“Recruitment is no longer about attracting candidates but managing high volumes and identifying quality talent. Agencies must rethink their hiring strategies to handle this evolving landscape efficiently,” he said.