“The fall in jobs in early 2025 reveals the extent that the Australian labour market has become dependent on government-supported employment generation – and the need to get the private sector growing again,” said Innes Willox, Chief Executive of the Australian Industry Group.
In the March quarter of 2025, the labour market shed 25,000 jobs, comprising 14,000 vacancies and 11,000 filled jobs. Outside of the pandemic disruptions, this is the first time the Australian economy has shed jobs since 2016.
The private market sector – which accounts for two-thirds of employment – has seen negligible job creation for the past two years. Government-supported employment in the public and non-market sectors has been responsible for almost all jobs growth.
With employment in the government-supported sectors declining in early 2025, Australia’s record-equalling 13-quarter run of continuous jobs growth has now come to an end.
“This worrying jobs data serves as a warning regarding the urgent need to improve private sector economic performance,” Mr Willox said.
“First, it shows that the private sector engine of our economy simply isn’t firing. When read alongside the weak GDP data released this week, it augurs poorly for a genuine economy recovery in 2025.
“Second, it shows the risk in relying on government spending to indefinitely prop up a sluggish economy. As soon as spending growth tapers – as fiscal sustainability dictates it eventually must – underlying private sector weakness is revealed.
“The labour market has been one of the few bright spots in our economy in the past 12 months. Output, investment and productivity are already listing, and we cannot afford to let employment go the same way.
“Governments can no longer hope a private sector recovery will simply materialise on its own. Getting productivity and investment moving – and doing so right now – must be at the forefront of minds in Canberra and around our state capitals,” Mr Willox said.
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