Australia’s unemployment rate has hit a five-year high of 4.7% in September, official figures show. The last time it was higher was at the end of the COVID lockdowns in October 2021.

Throughout 2026, the seasonally adjusted unemployment rate has increased steadily, up from 4.1% in January. The warning signs of a slowing labour market are mounting.

A weaker jobs market makes it more likely the Reserve Bank of Australia can wait before moving to raise interest rates again. After the latest jobs figures came out, market expectations of an interest rate rise in early November fell, from 30% tipping a rate rise to just 18%.

The RBA is set to meet on Melbourne Cup Day to make its next decision on interest rates.

That hard decision will now need to be made with RBA Governor Michele Bullock’s recent warning that unemployment might need to rise further having come to fruition.

What the latest data shows

Until last month, the rise in........

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