The economy lost 52,800 jobs, far below expectations of a 30,000-job increase.
Australia’s job market is facing fresh challenges as employment declined by 52,800 jobs in February, while workforce participation fell to 66.8 percent, according to the Australian Bureau of Statistics (ABS).
The job losses, which came against expectations of a 30,000-job increase, were partially offset by a steady 4.1 percent unemployment rate.
However, economists warn that fewer Australians are actively working or looking for jobs, a sign of growing uncertainty in the labour market.
Older Workers Leaving, Younger Workers Filling the Gaps
The ABS attributed the drop in employment partly to older workers stepping back from the workforce, with employment levels among older Australians lower than the same period in 2024.
“This follows higher levels of employment in these age groups in recent years, particularly in 2024, alongside growth in the employment-to-population ratio over the last few years,” said ABS head of labour statistics Bjorn Jarvis.
“In contrast, we continue to see growth in employment for people aged between 15 and 54 over the year.”
Job Market Becomes More Competitive
While job creation slowed in 2024, competition for roles has surged.
Recruitment platform JobAdder reported a 44 percent increase in job applications over the past year, making job hunting more competitive.
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At the same time, job creation fell by 5.4 percent in 2024, leading to more candidates per role.
Over the last three months of 2024, recruitment agencies saw an average of 41 applicants per job, while the number of jobs per agency declined by 5.6 percent, marking the lowest point of the year.
JobAdder CEO Martin Herbst noted a major shift in hiring trends.
“Recruitment is no longer about attracting candidates but managing high volumes and identifying quality talent. Agencies must rethink their hiring strategies to handle this evolving landscape efficiently,” he said.
Rise of Temporary Roles as Employers Play It Safe
As businesses remain cautious about permanent hires, many are turning to contract and temporary roles.
Temporary and contract roles accounted for 80 percent of all placements in 2024, up from 78 percent in 2023 and 74 percent in 2022. Meanwhile, permanent job placements have declined to just 20 percent of all new hires.
Herbst attributed this trend to economic uncertainty.
“The job market reflects broader economic conditions, and 2024 has been a challenging year for Australia. Employers are hesitant to overcommit to new hires while relying on temporary staff to manage fluctuating workloads,” he said.
Outlook: Stabilisation or Further Decline?
With job losses mounting, workforce participation declining, and hiring trends shifting towards temporary roles, Australia’s labour market is becoming increasingly competitive and unstable.
The Reserve Bank projects unemployment to average 4.2 percent by mid-year, but whether the job market stabilises or deteriorates further will depend on economic conditions in the coming months.
