On 20th March, the Australian Bureau of Statistics (ABS) announced that the nation’s seasonally adjusted unemployment rate was 4.1%, a figure that has not changed since January 2025. However, the last time unemployment rate had been above 4% was in January 2022. Let us take a closer look at what unemployment rate means and what that might mean for students like you.

Unemployment Rate

According to the RBA, the unemployment rate refers to the percentage of people in the labour force who are unemployed. The labour force includes individuals who are either employed or currently unemployed but actively seeking work. Another term often used in reference to unemployment rate is the participation rate. This refers to the number of individuals in the working age population that are in the labour force.

Looking closer at the unemployment figures, the ABS reported that those employed fell by 53,000 whilst those unemployed fell by 11,000. More people became unemployed than those who secured a job. However, the ABS attributes the drop in employment to the participation rate, which is currently at 66.8%, a figure mainly contributed by fewer number of older workers returning to work in February.

Effects on Students

Unemployment rates depend on a variety of factors, including economic growth, government policies and international markets. High unemployment rates often indicate a poor economy that is unable to generate sufficient jobs to match job seekers. Of course, we would all prefer the unemployment rate to be low, making it easier to secure our dream job. However, this is not always the case and based on forecasts, it is unlikely that the rate will remain constant indefinitely.

High unemployment rate and a weaker job market can make it harder for students to secure full-time employment. Employers might be more selective when reviewing applicants, leading to longer job search times and higher rejections. As a result, students might become more reliant on internships and casual or part time work. This makes it harder for students to become financially independent, affecting long term career growth and future planning.

Keeping up with the unemployment rates can help students make informed decisions on their career paths. Steering them toward industries with stable and growing employment prospects making it easier for students to secure jobs. Currently the unemployment rate has remained steady, despite the high number of job losses, students can expect to face heightened competition for available positions. Enhancing your CV, developing necessary skills, and effective networking can help you stand out.

Conclusion

Whilst the nation’s unemployment rate remains steady at 4.1%, the loss of nearly 53,000 jobs signals a weakening job market that will impact students and graduates. You need to be proactive in upskilling, networking, and securing work experiences. Staying informed about employment trends and adapting to market conditions will help you navigate an increasingly competitive workforce and build a stable financial future.