Unemployment Rises, But Payroll Data Shows Aussies Are Hustling, Not Retreating

Despite a rise in official unemployment figures, new data from Employment Hero’s September Jobs Report data reveals Aussies are stepping back into the workforce, not out of it, with job growth driven by young workers, casual hiring and resilience across key sectors.

Australia’s unemployment rate jumped to 4.5% in June, the highest since November 2021,  according to the Australian Bureau of Statistics. For some, it’s a sign that the labour market is finally cracking under the weight of high interest rates and weak consumer spending. But dig a little deeper and the picture looks more complex.

Employment Hero’s September Jobs Report data tells a different story. Rather than signalling retreat, the data shows a workforce in transition — one that’s reshaping, not shrinking.

“We’re seeing more Australians re-enter the labour market, but not everyone is landing work right away,” said Ben Thompson, CEO and co-founder of Employment Hero. “That jump in the unemployment rate may reflect a slight increase rather than economic failure.”

Employment Hero’s payroll data:

• Employment grew 0.8% month-on-month
• Average hours worked fell 0.6% MoM
• Casual workers’ hours dropped 2% YoY
• Full-time hours remained flat at 2%
• Median hourly rates increased 0.5% to $45.15

That last stat is telling. While more Australians are finding jobs, they’re not necessarily working more hours. In fact, hours worked among casuals fell 0.2% YoY even as more of them were hired.

“The jobs are real, we’re seeing clear growth in headcount, but workers aren’t clocking more time,” said Thompson. “This shows employers are still cautious, hiring to meet demand without overcommitting.”

ABS data have also shown a slight bump in participation, suggesting that there are green shoots in recruitment. 

Employment Hero’s Annual Jobs Report found 57% of Australians are now ‘job hugging’, holding on to their current role for stability and one in three now juggles multiple jobs to stay afloat.

Casuals up, confidence down

“This mix of growth and caution shows a market that’s changing shape, not cooling,” said Thompson. “It’s not about job losses, it’s about job the composition of work.”