Over the past month, unemployment registered a stark increase, suggesting businesses have slowed down hiring initiatives and stopped creating new roles.
Australian Bureau of Statistics (ABS) Labour Force figures for August show rates rose to 4.6% in the Newcastle and Lake Macquarie statistical area and 5.1% in the rest of the Hunter Valley.
It represents a total loss of 6,500 jobs.
The figures are a full percentage higher than the 12-month averages for the respective areas, and well above the national level of 4.2%.
Business Hunter also identified an upwards trend of unemployment among those aged 15-to-24, growing from 7.2% in August 2024 to 13.4%.
CEO Bob Hawes said the data was consistent with the feedback they received in the most recent Business Condition Survey.
“Only 13% of Newcastle and Lake Macquarie businesses and 10% of those in the Hunter had hired additional staff in the last quarter,” he explained.
“While business confidence was up slightly, there was still a strong sense of caution around hiring, given global economic uncertainties and the rising pressure of inescapable costs such as energy, insurance and government taxes and charges.
“Nationally, economists are saying that job creation has stalled, with the August unemployment rate of 4.2% only remaining steady due to a reduction of more than 22,000 in the number of people looking for jobs.”
Mr Hawes said unemployment in the region had begun to creep up over the past two months after showing very favourable conditions for job seekers for most of 2025.
“It’s not time to hit the panic button, but it does suggest a slowdown in the local job market,” he added.
“Interestingly, our Business Conditions Survey showed more regional businesses anticipated increasing their headcount in the third quarter.
“So, hopefully, the predicted rebound in business confidence eventuates and that trend is reflected in labour force figures in coming months.”
Other figures showed more than 5,000 jobs were listed across the region in August, which is high by pre-COVID standards, but dramatically lower compared to August 2023 by a total of 27%.
“There’s a sense of fatigue in the job market whereby some businesses are still unable to find workers with the right skills and experience and those seeking work are becoming less active in looking because the job they want or that matches their qualifications is not out there,” Mr Hawes said.
“This is all showing up in continuing soft labour force participation rates in the region compared to the rest of NSW and Australia.
“It’s an area the region will need to focus on given the medium-and-longer-term needs of existing and foreshadowed jobs demand.
“We must get the education, training and skills aligned with job market requirements for the next generation.”
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