Australia's job creation in November saw a larger-than-expected drop of 2.31 positions.

Australia's job figures showed their biggest drop in nine months, defying market expectations and reinforcing the slowdown in the labor market. This may reduce pressure on the RBA to raise interest rates. The unemployment rate remained stable at 4.3%, despite a sharp decline in full-time employment.

December 11, 2025 – The Australian Bureau of Statistics (ABS) reported that employment in November fell by 23,100 positions compared to the previous month, marking the first and sharpest decline in nine months. This contrasts sharply with most analysts' expectations of an increase of around 20,000 positions, and is a significant departure from the 41,200 job creation seen in October.

The sharp decline in employment figures reflects signs of a slowdown in the Australian labor market, which could be a key factor in easing pressure on the Reserve Bank of Australia (RBA) to consider raising its policy interest rate in the near future, especially after a series of rate hikes in the past to control inflation.

The annual employment growth rate fell to 1.3% in November, a significant drop from the 3.5% recorded earlier in the year and lower than Australia's population growth rate of around 2%, highlighting a decreased capacity to absorb new labor.

Although net employment figures decreased, the unemployment rate remained stable at 4.3%, unchanged from the previous month and contrary to analysts' expectations of a slight increase to 4.4%. This stability may be due to some people leaving the labor market.

The labor market participation rate, which measures the proportion of the working-age population in the labor force, has decreased to 66.7% from 66.9% in October.

While full-time employment decreased significantly by 56,500 positions, part-time employment increased by 35,200 positions. This structural shift indicates employers' uncertainty in increasing full-time employment in the long term and their greater reliance on part-time labor to manage fluctuating costs and demand.

This type of labor market slowdown will be closely considered by the RBA in its next monetary policy decision. The data is consistent with the central bank's goal of cooling the economy to control inflation. However, the unemployment rate remaining low compared to historical averages may cause the RBA to remain cautious in signaling a clear end to the interest rate hike cycle.

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