Antipodean Labour Market Compendium

Will reduced uncertainty support better hiring conditions?

We have updated our comprehensive chartpack on labour markets in Australia and New Zealand.

Australia’s unemployment rate - at 4.4% - remains low by historical standards and below the RBA’s NAIRU estimate.

Nevertheless, labour market conditions have eased in recent months.

Employment didn’t grow in net terms over April/May and rose just 1% over the year to May. That soft growth has seen the employment-to-population ratio fall by nearly 0.5ppts over that period. The increase in average hours worked over the second half of 2025 has also stalled.

Youth labour market conditions have been hit the hardest.