The Hunter region’s unemployment rate increased in January 2025, according to the latest Australian Bureau of Statistics (ABS) Labour Force data, but businesses are still struggling to find workers.
Business Hunter, the region’s peak business group, reported that unemployment rose from 2.6 per cent in December 2024 to 3.8 per cent in January 2025, following a loss of 5,100 full-time jobs. A rise of 2,600 part-time roles helped offset some of the decline, leading to a net job loss of 2,400 across the month.
Business Hunter CEO, Bob Hawes, said the shift was expected as part of the region’s annual employment patterns.
“The change follows a similar pattern to 12 months ago, when the region’s employment rate grew from 2.9 per cent to 4.1 per cent across the same period,” Bob said.
“It’s reflective of seasonal factors, and the fact that relatively few jobs were lost still speaks to the tightness of the overall employment market across the region.”
Long-term job growth and business demand
Over the past 12 months, total job growth in the Hunter was 3,600 positions, with an increase of 8,600 full-time jobs, partially offset by a decline of 5,000 part-time roles.
“This highlights the employment demands of the business sector and is a reversal of the shrinkage in overall employment we witnessed from 2023 to 2024,” Bob said.
“Businesses continue to list workforce factors as a constraint, and the 12-month growth in full-time roles reflects market demands and strong conditions.”
The Hunter’s unemployment rate of 3.8 per cent remains below the state average of 4 per cent. However, there were regional differences, with Newcastle and Lake Macquarie’s unemployment rate rising from 1.9 per cent to 3.7 per cent, while the Hunter Valley rate eased slightly from 3.8 per cent to 4 per cent.
Youth unemployment and job vacancies
Youth unemployment (15 to 24 years) fell from 4.7 per cent in December to 4.2 per cent in January, suggesting strong demand for young workers.
“In 2023 to 2024, the youth unemployment rate sagged, but this year we have seen a reversal of that trend,” Bob said.
“We’re also seeing far higher youth participation rates of around 76 per cent, compared with 63 per cent in the overall market.”
The number of job ads in the region remains higher than pre-pandemic levels, despite a 3.2 per cent drop in January. The Jobs and Skills Australia Internet Vacancy Index recorded 4,618 job ads in the Hunter, down from 4,770 in December, compared with a 4 per cent increase nationally.
Across 2024, the Hunter averaged 5,582 job ads per month, 64 per cent higher than the monthly average in 2019 (3,397). Over the same period, the region’s workforce population grew by 9.9 per cent (53,200 people), while total employment increased by 31,500 roles.
“The tight labour market continues to challenge businesses looking for staff, which is reflected in our quarterly Business Conditions Survey outcomes,” Bob said.
“At the same time, people seeking work with the right skills and experience will have continued to benefit from strong job opportunities.”
IMAGE | CEO of Business Hunter, Bob Hawes
