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Jobs jump by 42,000 as unemployment rate dips to 4.3% in October

October’s ABS labour force data shows signs of resilience in the jobs market, with full-time work leading the rebound.

12 November 2025

Homes in Springfield, west of Brisbane. Picture: AAP Image/Darren England

Key takeaways:

  • Employment rose by 42,200 in October - more than triple the September figure.
  • Underemployment fell to 5.7%, its lowest level in two years.
  • NSW recorded the weakest annual jobs growth at just 0.7%.
Unemployment and employment trends October 2025

Australia’s job market showed renewed strength in October, with unemployment falling to 4.3 per cent and a solid lift in full-time employment. The latest figures from the Australian Bureau of Statistics show 42,200 jobs were added, well above expectations and a sharp turnaround from September’s softer result.

The number of people looking for more work also dropped, with underemployment falling to 5.7 per cent. Monthly hours worked rose by 0.5 per cent, suggesting businesses are keeping staff busy.

“This result unwinds the weakness seen in September and supports our view that the job market remains in good shape,” said CBA economist Harry Ottley.

“We expect the unemployment rate to rise only marginally to 4.5 per cent by year-end and remain stable through 2026.”

State-by-state snapshot

Tasmania, South Australia and Western Australia led the improvement in unemployment rates. South Australia posted the strongest annual jobs growth at 3.6 per cent, while NSW lagged behind with just 0.7 per cent growth.

Employment by state October 2025

What’s driving the shift?

The private sector is showing signs of recovery, helped by stronger household spending and improved consumer confidence. Businesses are still reporting difficulty finding workers, and job vacancies remain high — pointing to ongoing demand for labour.

The Reserve Bank is expected to keep interest rates steady at 3.6 per cent through 2026, with today’s data likely to support its view that the job market remains “a little tight”.

Read Harry Ottley's full analysis: Unemployment rate back to 4.3% in October

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The information presented is an extract of a Global Economic and Markets Research (GEMR) Economic Insights report. GEMR is a business unit of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945.



This extract provides only a summary of the named report. Please use the link provided to access the full report, and view all relevant disclosures, analyst certifications and the independence statement.



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