Australia's Unemployment Rises To 4.1%: Jobseekers Face 'Ghosting' Amid Record Workforce Participation

Australia's unemployment rate rose slightly to 4.1% last month as workforce participation reached a record high, with more people either employed or actively searching for work.

The increase in the unemployment rate was also influenced by workers who had secured jobs but were yet to start their new roles after the summer.

Australians witnessed 44,000 new jobs last month, much more than experts had predicted, ABC reported.

A LinkedIn survey, meanwhile, revealed that some jobseekers feel the hiring process has become similar to using dating apps. The survey, which was conducted at the end of 2024 and comprised 2,000 Australians, found that 51% had experienced "ghosting" while searching for jobs.

Workforce participation pushes unemployment up

The participation rate, which shows how many people are working or looking for a job, reached a new record of 67.3%. The number of unemployed people went up by 23,400; however, this was mostly because many had been hired, but were still waiting to start their new jobs.

These people are counted as unemployed in the statistics for now, but most will be considered employed next month. The Reserve Bank expects the unemployment rate to average 4.2% in the June quarter and stay around that level throughout 2025.

Ghosting, competition, and frustration

Dilhara Sivalingam, a 49-year-old jobseeker with a successful track record managing multi-million-dollar government contracts, but has struggled to find a permanent position since the COVID-19 pandemic, said, "I feel like I'm playing the Tinder of recruitment."

"When I submit an application, I cross my fingers and look at my laptop," she added. "I feel like, on the other side of that laptop, someone's going, swipe left, swipe left, swipe left. 'Too expensive, too experienced. Don't like her name. Two-page cover letter, we only have time to read one.'"

Sivalingam feels that while there are many job openings, senior and leadership roles are rarely advertised. She believes only about 30% of these positions are publicly listed, while the rest depend on personal connections rather than skills or experience.

Last year, she applied for around 120 jobs and received about 25 interview calls.

She finds the job market extremely competitive, giving recruiters an advantage. For her, applying for jobs is a numbers game, while for recruiters, it's about meeting hiring targets. She finds the process unfair and often disheartening.

LinkedIn's Australian career expert Cayla Dengate said their research has revealed that jobseekers were applying to at least seven jobs every week. As a result, hiring managers were getting overwhelmed, especially due to an increase in applications from unqualified people.

"So maybe the best way to get your next job when you're at that mid-level role is to reach out to your peers, your friends, your contacts, people you used to work with. Let everyone know that you're open to work," Dengate suggested.