Private sector unemployment surges

The Australian Bureau of Statistics (ABS) released its Q3 Labour Account, which revealed the extent to which Australia’s job market has been artificially fuelled by government spending.

As illustrated below by Justin Fabo from Antipodean Macro, the annual growth in filled jobs remained stronger in the non-market (government-aligned) sector in the year to September 2025 than in the market sector:

The non-market sector includes healthcare, social assistance, education, and public administration. Filled jobs in the non-market sector rose by 1.0% in Q3 2025 to be 1.6% higher year-on-year, down significantly from the peak.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.