Australia's jobless rate holds steady at 4.2%, employment unexpectedly eases in August

[Stock market investment trading financial, coin and Australia flag or Forex for analyze profit finance business trend data background.]

Australia's new data shows that net employment fell by 5,400 in August, significantly missing forecasts for a gain. The decline was largely driven by a sharp drop of 40,900 full-time jobs. While the unemployment rate held steady at 4.2%, the overall participation rate fell, signaling a gradual softening in the labor market.

Australia’s seasonally adjusted unemployment rate stood at 4.2% in August 2025, unchanged from the previous month and in line with market expectations. The number of unemployed people fell by 900, bringing the total to 647,400.

Employment in Australia dropped by 5,400 to 14.63 million in August 2025, reversing an upwardly revised 26,500 gain in the previous month and missing market expectations of a 22,000 increase.

On a yearly basis, total employment still rose by 217,200, or 1.5%.

The S&P/ASX 200 Index [https://seekingalpha.com/symbol/AS51#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] dropped 0.8% to around 8,745 on Thursday, extending losses to a two-week low. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] traded around $0.665 on Thursday, holding its losses from the previous session, as markets digested a softer-than-expected domestic jobs report.

ETFs: (NYSEARCA:EWA [https://seekingalpha.com/symbol/EWA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FXA [https://seekingalpha.com/symbol/FXA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FLAU [https://seekingalpha.com/symbol/FLAU#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]).

MORE ON AUSTRALIA

*
Australia's Q2 producer price index rises 0.7%, following soft consumer inflation report [https://seekingalpha.com/news/4476250-australias-q2-producer-price-index-rises-07-following-soft-consumer-inflation-report#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

* Australia CPI slowest in four years in Q2, headline CPI at 0.7% Q/Q and 2.1% Y/Y [https://seekingalpha.com/news/4473998-australia-cpi-slowest-in-four-years-in-q2-headline-cpi-at-07-qq-and-21-yy#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]
*
Australia's trade surplus narrows to five-year low in May, missing forecasts amid export dip [https://seekingalpha.com/news/4465144-australias-trade-surplus-narrows-to-five-year-low-in-may-missing-forecasts-amid-export-dip]

*
Australia's Q1 GDP misses estimates amid weak public spending, consumer demand, and exports [https://seekingalpha.com/news/4455229-australias-q1-gdp-misses-estimates-amid-weak-public-spending-consumer-demand-and-exports]

* RBA Minutes: Rate cut signals caution, data to drive future policy [https://seekingalpha.com/news/4454669-rba-minutes-rate-cut-signals-caution-data-to-drive-future-policy]