Discouraged workers are the hidden figures of Australia’s unemployment story. As the country’s economy shifts in 2025, these individuals—who want a job but have stopped searching—are quietly shaping the real picture of our labour market. Who are they, why are their numbers rising, and how does this affect everyday Australians?
Who Are Discouraged Workers and Why Do They Matter?
Discouraged workers are people who are not officially counted as unemployed because they’ve given up looking for work. They’ve lost faith in finding a job—often after repeated setbacks, discrimination, or a lack of suitable opportunities. According to the Australian Bureau of Statistics (ABS), a person is considered a discouraged job seeker if they want to work, are available to start, but aren’t actively seeking employment because they believe there are no jobs available for them.
- They are not included in the official unemployment rate.
- Discouraged workers often include older Australians, those with disabilities, long-term unemployed, and people in regional or rural areas.
- In 2025, their numbers have ticked upwards, reflecting deeper challenges in the labour market even as headline unemployment appears stable.
2025 Labour Market Data: The Invisible Workforce
The latest ABS Labour Force Survey (February 2025) revealed that while Australia’s official unemployment rate hovers at 4.2%, the number of discouraged workers has increased by over 15% compared to pre-pandemic levels. This means thousands of Australians are slipping through the cracks of official statistics.
- Key drivers in 2025: The shift to digital work and automation has made it harder for older workers and those without advanced digital skills to compete.
- The ongoing housing affordability crisis has forced more Australians into insecure housing, impacting their ability to seek and maintain employment.
- Regional communities hit by climate-related disruptions are seeing spikes in discouraged worker numbers as traditional industries contract.
Case study: In regional Victoria, post-2024 bushfires and drought have led to a 23% increase in discouraged workers, as agricultural jobs dry up and retraining programs struggle to keep pace with demand.
Government Policy and Community Responses in 2025
The Albanese government’s 2025 budget introduced targeted measures to tackle workforce disengagement, but challenges persist. New policy updates include:
- Expanded Skills Australia program: Additional funding for digital and green economy retraining, prioritising mature-age job seekers and regional Australians.
- Incentives for employers: Wage subsidies for hiring long-term unemployed and those returning after long absences.
- Job Access Hubs: Community-based centres providing tailored support for discouraged workers, including mental health services, job-matching, and digital literacy training.
While these initiatives are a step forward, advocates warn that more flexible part-time and remote work opportunities, alongside stronger anti-discrimination enforcement, are needed to bring discouraged workers back into the fold.
What Does This Mean for Australians and the Economy?
Discouraged workers signal untapped human potential. When large numbers of people are sidelined, it reduces national productivity, increases welfare costs, and erodes community wellbeing. For individuals, it can mean financial stress, social isolation, and declining mental health.
If you know someone who’s stopped looking for work, or if you’re in this situation yourself, you’re not alone. Australia’s economic future depends on recognising and supporting discouraged workers—because a stronger workforce benefits us all.
