Jobs warning: The workers most at risk in Australia's unemployment surge

The Australian

28-07-2025

Australia's white collar workers will soon be under threat as experts warn the job slow down is 'more complicated' this time around.
In its latest release of jobs data, the ABS revealed Australia's unemployment rate soared to 4.3 per cent, its highest level since the post pandemic recovery.
The falls were broad-based with NSW, Queensland, Western Australia and the Northern Territory all seeing strong spikes in unemployment.
Drilling down into the figures, so far it has impacted blue collar workers disproportionately, but it is expected major technological advancements will flip the script in the next year.
ABS data released in June shows workers living in Sydney's west, including the Parramatta district have an unemployment rate of 5.7 per cent, compared to Sutherland in Sydney's south, which recorded just a 2.3 per cent unemployment rate.
The job market is impacting Australian workers differently. Picture: NewsWire/ Monique Harmer
Meanwhile, those in Melbourne Inner East and South have seen a 0.2 per cent spike in unemployment while those in Geelong have actually seen the market strengthen.
AMP chief economist Shane Oliver said this could change as unemployment becomes 'more complicated this time' as the number of new public sector roles drops and AI use becomes more commonplace within corporations.
'Normally it's the more cyclical parts that are vulnerable including manufacturing, construction, and retail,' he told NewsWire.
'This time could be a little different.'
'You've also got the overlay of AI coming in which suggests there could be more of an impact on white collar jobs, as companies seek to lower their costs through the emergence of the new technology.'
White collars are tipped to be the hardest hit by the rise in unemployment. Picture: NewsWire / Damian Shaw
Seek's monthly jobs data also points to less need for white collar workers.
The construction sector was the only area that recorded a lift in job ads in June as a whole, while there were some pockets in growth for those in professional services including markets and communications and accounting.
Meanwhile available information and communications technology positions continued to decline, with job ads falling 3.5 per cent in June or 10.5 per cent for the year.
Advertised positions in the sector have now fallen below covid levels.
Seek senior economist Blair Chapman said there had been a 5.5 per cent fall in job ads, and an increase in the number of Australians looking for work.
Traditional construction jobs are less likely to be impacted by the change in workers. Construction Generics. Picture: NewsWire / John Appleyard
'On the other side of the market, applications per job ad have never been higher, and have now surpassed the peak recorded in 2020 when job ads were at their lowest,' he said.
'This rise is due to an increased candidate pool, rather than candidates applying for more roles.
'Over the past couple of years more Australians have taken on a second job, or are looking to do so, and more workers have entered or re-entered the workforce.
'This is likely in response to increased living costs, and as a result, competition is extremely strong for most available roles.'