The Australian Bureau of Statistics reported the national unemployment rate held steady in November at 4.3 per cent – the same figure it’s been for five of the past six months.

However, more detailed figures show a cautious shift in how businesses are managing staff during the peak season.

The Rise of Underemployment

While the unemployment rate was stable, there was noteworthy movement in underemployment.

The ABS reported that the seasonally-adjusted underemployment rate rose by 0.4 percentage points to 6.2 per cent in November.

There was also a decline in total employment of 21,000, driven by a decrease of 57,000 full-time jobs which was only partially offset by a rise in part-time roles. The increase in underemployment suggested some of those part-time workers may be seeking full-time hours but unable to secure them.

“The number of underemployed people who worked part-time, but would prefer more hours, rose 5.9 per cent over the last year,” said Sean Crick, ABS Head of Labour Statistics. “This was led by males, which grew 17.0 per cent, whereas females recorded a small fall of 1.7 per cent.”

There Is Some Seasonal Momentum 

Beyond the broader ABS figures, real-time data suggests many small businesses entered the busy period with optimism. Employment Hero CEO and Co-Founder Ben Thompson highlighted positive hiring trends among SMEs, drawing on data from 1.5 million Australian workers.

“The good news is the economy’s rockiness hasn’t derailed the jobs market during the busiest time of year,” Mr Thompson observed. “Our November Jobs Report shows employment across SMEs is still rising, with young workers and casuals driving much of the momentum as businesses geared up for Black Friday and Christmas trade.”

This capacity building is also visible in employee hours. “Hours worked have seen very gradual increases throughout 2025, but November saw its biggest surge since August 2025,” Mr Thompson confirmed. “Businesses are not only hiring, they’re also rostering more hours.”

Managing Costs and Higher Interest Rates

Businesses have been warned the tight economic environment may continue into the new year, with Mr Thompson noting higher borrowing costs could be long-term factor.

“The Reserve Bank’s decision earlier this week to hold the cash rate at 3.60 per cent came as no surprise. Inflation remains well above target and has picked up again, so the RBA is signalling it’s ready to keep policy tight, and possibly move again in 2026 if needed. For households and small businesses, higher-for-longer borrowing costs are now the baseline assumption.”

This week’s Commonwealth Bank Labour Insights report also indicated wage trends and labour force data would be central to the Reserve Bank’s decisions.

“November’s increase in jobs highlights a labour market that is neither overheating nor weakening,” said CBA Head of Australian Economics Belinda Allen. 

On staff costs, wages remain elevated. Said Ben Thompson: “Wages are close to 5 per cent higher than a year ago, but we did see a slight dip in November even as hours worked increased.”