The Australian Bureau of Statistics (ABS) reported that the national unemployment rate reached 4.7% in September, marking the highest level seen in nearly five years. This shift was driven by a net loss of 39,300 jobs across the country, a result that surprised many economists who had forecasted growth in employment figures.

The underlying data shows a divergence between full-time and part-time work. While the economy added 34,400 full-time positions during the month, this gain was significantly outweighed by a loss of 73,700 part-time roles. The Guardian notes that the jobless rate would have appeared higher in previous months had the ABS not revised the August unemployment figure upward from 4.6% to 4.7%.

Economic analysts point to the ongoing impact of high interest rates and the rising cost of living as primary drivers for the cooling labor market. The contraction in part-time employment suggests that businesses may be tightening their operations in response to these broader financial pressures. While the increase in full-time roles provides some stability, the overall trend indicates a softening in the Australian labor market that has exceeded initial market expectations.