March saw a shift in labour market conditions across the Northern Territory, with softer employment results emerging alongside broader economic pressures. National and global factors, including rising interest rates and fuel costs, are beginning to influence business confidence and operating conditions. At the same time, long-term investment in tourism, housing, and workforce development continues to support future job creation across the Territory.
Labour Market Snapshot
Employment in the Northern Territory declined by 0.5% to 145,265 persons in February 2026, with both full-time and part-time employment falling slightly over the month. This represented the second weakest result across all jurisdictions, while national employment increased by 0.3%. Over the year, employment in the Territory rose by 0.8%, the weakest growth nationally. The unemployment rate increased by 0.5% to 5.0%, the highest of all jurisdictions, while the participation rate declined slightly to 73.0%, remaining the highest in the country and well above the national average of 66.9%. These results indicate some softening in labour market conditions, despite continued high levels of workforce participation.
Source: Department of Treasury and Finance; Australian Bureau of Statistics, Labour Force, Australia, Detailed, released March 2026
NAB Quarterly Business Survey Shows Conditions and Confidence Down
The latest NAB Quarterly Business Survey indicates a decline in both business conditions and confidence across Australia. Rising costs, weaker demand, and ongoing economic uncertainty are contributing to more cautious business sentiment. For Northern Territory employers, this may translate to slower hiring activity and more conservative investment decisions in the short term.
Rising Fuel Costs and Middle East Conflict Impact NT Economy
Global tensions in the Middle East, including concerns around conflict involving Iran, have contributed to rising fuel prices and increased uncertainty around supply chains. For the Northern Territory, where transport and logistics costs are already high, fuel price increases are placing additional pressure on businesses, particularly in regional and remote areas. Higher operating costs may impact margins, pricing, and hiring decisions across industries reliant on freight and travel.
Interest Rate Increase Impacts Businesses and Household Spending
Following a 0.25% increase in the cash rate, major banks have lifted interest rates, adding further pressure to borrowing costs for businesses and households. Higher interest rates are expected to reduce consumer spending and influence business investment decisions. In the Territory, sectors such as construction, retail, and small business may be particularly affected, with potential flow-on impacts to employment demand and workforce stability.
$3 Million Tourism Fund to Support NT Businesses
The NT Government has launched a $3 million Experience Fund to support tourism operators in developing new products and experiences. The initiative aims to strengthen the visitor economy, particularly in regional areas, by encouraging innovation and increasing the Territory’s appeal to domestic and international travellers. The fund is expected to support job creation across tourism, hospitality, and related service industries.
NT Tourism Strategy Targets 6,000 New Jobs
The next phase of the Visitor Economy Strategy 2032 outlines plans to grow the Territory’s tourism sector into a $3 billion industry, with a target of creating up to 6,000 new jobs. The strategy focuses on increasing visitation, improving infrastructure, and supporting industry capability. This long-term approach highlights tourism as a key driver of future employment, particularly in regional and remote areas.
New NT Housing Strategy to Support Workforce Growth
The development of a new Northern Territory Housing Strategy aims to address housing supply and affordability challenges across the region. Housing availability remains a key barrier to attracting and retaining workers, particularly in remote and regional communities. Improvements in housing supply are expected to support workforce growth and enable businesses to fill critical roles more effectively.
NT Nurses and Midwives Enterprise Agreement Negotiations Begin
Enterprise agreement negotiations for Northern Territory nurses and midwives have commenced, with discussions expected to focus on pay, conditions, and workforce sustainability. The healthcare sector continues to face significant staffing pressures, and the outcome of these negotiations will play an important role in attracting and retaining workers in critical frontline roles.
Conclusion
March highlights a more complex outlook for the Northern Territory labour market, with short-term softening in employment conditions occurring alongside longer-term growth opportunities. While economic pressures such as rising costs and interest rates may influence business confidence in the near term, ongoing investment in tourism, housing, and workforce development continues to support future employment growth. Balancing these challenges and opportunities will be key to maintaining a stable and resilient labour market across the Territory.
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