Unemployment Hits 4.7% and Employers Are Getting Twice the Applicants of 2022

Australia's unemployment rate rose to 4.7% in September, its highest level since October 2021, according to Labour Force figures the Australian Bureau of Statistics released on 15 October. For the 732,000 people looking for work, that is hard news. For small businesses that spent four years competing for every candidate, it means the hiring market has swung back towards the employer.

The rate has climbed from 4.1% in January. Employment fell by 39,300 people in September, and the whole fall came from part-time work, which dropped by 73,700. Full-time employment rose by 34,400 in the same month. The underemployment rate, which counts workers who want more hours than they have, rose to 6.3%.

More applicants for every job

Jobs and Skills Australia surveys employers who have recently advertised a role. In the June quarter of 2026 they received an average of 25.1 applicants per vacancy, up from 22.5 a year earlier and roughly double the 12.6 recorded in the March quarter of 2022. The number of applicants employers judged suitable rose as well, to 5.0 per vacancy. Fewer jobs are chasing those people. The ABS counted 325,000 vacancies in August, 31.2% below the peak in May 2022.

For a small business, that changes what a job ad can do. A role that drew a handful of replies in 2022 is now drawing a pile, and on average about one applicant in five is someone the employer would seriously consider.

Trades are still hard to fill

The trades are the exception. Employers hiring technicians and trades workers filled 55.7% of their vacancies in the June quarter, against 69.5% across all occupations, and those roles stayed open for 7.0 weeks on average. Applicants per trades vacancy fell over the year, from 20.4 to 18.5. If you need an electrician, a diesel mechanic or a chef, the looser market has not reached you yet.

What it means for interest rates

The Reserve Bank lifted the cash rate to 4.60% at its September meeting, its fourth increase this year. In its statement on 29 September, the Board said labour market conditions had eased broadly as expected and that it would be attentive to the data. It meets next on 2 and 3 November, and the ABS publishes September quarter inflation figures on 28 October, the week before. A softer jobs market takes some pressure off the Board. Inflation remains the number it has said it is focused on.

How to hire from a deeper pool

If you have been carrying an empty role, or covering it yourself because the last ad went nowhere, advertise it again now. Ads written during the shortage often led with pay and perks just to get a reply. With more people applying, spell out the actual work, the hours and the skills you need, so the people who are not a fit rule themselves out before they reach your inbox.

Look hard at the part-time pool. September's fall was entirely in part-time jobs, and underemployment is rising, so there are experienced people working fewer hours than they want. A three or four-day role, or a part-time position with a clear path to more hours, can reach candidates who were out of reach a year ago.

Budget for the screening. An average of 25 applications per role is a real time cost for an owner who also runs the business. A short phone call, a practical task or a paid trial shift will find the suitable fifth faster than reading every application twice.

For trades roles, start earlier than feels necessary. At seven weeks to fill, a vacancy opened once the work is booked will still be open while that work waits. Taking on an apprentice, or training an existing worker into the role, is worth costing alongside an external hire.

This article is general information only and is not financial advice.