Australia’s Jobless Rate Steady at 4.1% in May, Employment Growth Disappoints

Australia’s Unemployment Rate Holds at 4.1% in May, Employment Drops Unexpectedly

The Australian Bureau of Statistics (ABS) reported Thursday that the unemployment rate in May 2025 remained steady at 4.1%, in line with market expectations and April’s figure.

Employment Change Turns Negative

Despite the stable jobless rate, total employment dropped by 2.5K, a sharp reversal from the revised 87.6K gain in April (previously 89K). This significantly missed analysts' expectations for a 25K increase, raising concerns over the strength of labour market momentum.

• Full-Time Employment rose by 38.7K, up from a revised 58.6K
• Part-Time Employment fell sharply by 41.2K, from 29K in April (revised from 29.5K)
• The labour force participation rate dipped slightly to 67.0%, down from 67.1%

View Full ABS Labour Force Report

AUD Traders Eye Mixed Signals

The mixed data — stable jobless rate vs. falling employment — provides no clear direction for the Reserve Bank of Australia (RBA) ahead of its next policy meeting. A weaker headline jobs number, alongside falling participation, may temper hawkish expectations, especially amid global economic headwinds.

Related: How Australia's Labour Market Impacts AUD/USD

Conclusion

Australia’s May jobs report delivers mixed signals — while the unemployment rate held firm, the drop in net employment and part-time jobs signals underlying labour market softness. Policymakers and investors will be closely watching June figures to confirm the trend.

Stay informed on the latest economic data releases at the Tredu Economic Calendar.