The Australian Bureau of Statistics reported that while part-time employment plummeted by 73,700, full-time positions managed a modest gain of 34,400. Despite the headline job losses, the unemployment rate remained stalled at 4.7%, matching the post-pandemic high recorded in August. The workforce participation rate also slipped, dropping to 66.8%.

Moody’s Analytics economist Sunny Nguyen noted that firms are prioritizing cuts to shifts and casual hours—a hallmark of an early-stage hiring downturn. This trend suggests the official unemployment rate may currently mask the true extent of labor market slack, as discouraged workers exit the workforce entirely.

These figures arrive at a precarious moment for the Reserve Bank of Australia. With inflation running at 4.0%, policymakers remain committed to slowing economic demand to reach a 2.5% target. However, the bank faces mounting pressure from volatile Middle East tensions and stagnant productivity. Traders continue to bet on further rate hikes in November, even as economists warn that additional tightening could push mortgage repayments to their highest levels since the late 1980s.