Unemployment has edged higher across the Hunter, but new figures show thousands more people are working across the region than a year ago.
Australian Bureau of Statistics Labour Force data shows the Hunter unemployment rate increased from 3.9 per cent in June to 4.3 per cent in July.
In Newcastle and Lake Macquarie, unemployment rose from 3.9 per cent to 4.2 per cent, while the Hunter Valley recorded an increase from 4.0 per cent to 4.5 per cent.
The national unemployment rate was 4.5 per cent, while NSW recorded 4.2 per cent.
Despite the monthly increase, the Hunter added 5,600 jobs in the 12 months to July 2026.
The region’s working-age population grew by 7,100 people over the same period and now exceeds 600,000, with 373,300 Hunter residents employed.
Business Hunter CEO Bob Hawes said the July figures reflected more people entering the workforce rather than a significant fall in employment.
“The number of employed people across the Hunter fell by just 200, while the number of people looking for work increased by around 1,400,” he said.
“This reflects more people entering the labour force rather than a significant deterioration in employment conditions.”
Job advertisements also increased across the region.
The Hunter’s Internet Vacancy Index rose 3.7 per cent between June and July, ahead of national growth of 2.7 per cent.
Professional occupations represented 29.2 per cent of all advertised vacancies across Newcastle and the Hunter, making them the largest occupational group.
However, Mr Hawes said conditions continued to vary between industries, with some businesses struggling to find skilled workers while others were experiencing softer demand.
Housing affordability was also identified as an increasing challenge for the Hunter workforce.
Research from housing and welfare coalition Everybody’s Home found a Hunter worker earning the national median income could spend more than half their pay on rent.
“Housing affordability and workforce participation are deeply connected,” Mr Hawes said.
“When key workers, professionals and middle-income households struggle to find affordable housing, it becomes harder for employers to attract and retain the people they need.”
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