Unemployment across the Hunter region continues to rise, with fewer employers advertising roles and a softening labour market reflected across New South Wales and Australia.
The latest February Labour Force figures from the Australian Bureau of Statistics show a growing divide between Newcastle and Lake Macquarie, and the broader Hunter Valley region, which includes the Upper Hunter, MidCoast, Cessnock, Maitland and Port Stephens.
Unemployment in Newcastle and Lake Macquarie edged up slightly from 3.7 to 3.8 per cent in February, still sitting below the state average of 4 per cent. However, the jobless rate in the Hunter Valley climbed more sharply from 4.0 to 4.6 per cent.
Participation rates also told two different stories. Newcastle and Lake Macquarie saw a boost, with 2,600 more people entering the workforce last month. In contrast, the Hunter Valley saw a drop of 2,700 people who either left the workforce or stopped actively looking for work. This divergence continues a trend seen since late 2024.
Barriers to participation
Business Hunter CEO Bob Hawes said the falling participation rate in the Hunter Valley reflects broader challenges.
“We’re really looking at issues which can’t be resolved quickly in order to unlock the barriers we see in the labour market,” Mr Hawes said.
“Access to suitable housing, limited transport options, and a mismatch between job requirements and applicant experience are contributing to the decline.”
He said a number of local initiatives are underway to address these barriers. “Workforce Australia is holding a Careers Day in Muswellbrook on 3 April, and other events such as a Jobs Connect day in Cessnock are also planned.”
Mixed signs in employment data
Despite the softening market, full-time employment in the region grew by 2,700 jobs in February, driven largely by the higher participation in Newcastle and Lake Macquarie. Part-time employment remained steady.
Job ad numbers continued to fall across the Hunter, dropping to 4,448 in February from 4,618 in January, according to the Jobs and Skills Australia Internet Vacancy Index. While still above pre-COVID levels, this is around 1,000 fewer ads than in February 2024, suggesting a continued cooling of employer demand.
Youth unemployment rises, but still below pre-COVID highs
The youth unemployment rate (ages 15 to 24) rose to 5.6 per cent in February from 4.2 per cent in January. However, the number of unemployed young people remains comparatively low at 4,100 – well down from 7,700 in February 2020, when youth unemployment was in double digits.
“Young job seekers with the right qualifications and training will be enjoying a fairly buoyant market,” Mr Hawes said.
“Initiatives in the federal budget such as fee-free TAFE and subsidies for apprentices in priority sectors will help keep that momentum going.”
IMAGE | Chief Executive Officer, Bob Hawes
