Economic Update July 2025 - Interest Rates, Rising Unemployment and Energy Shocks
- Future Accounting
- Jul 31
- 2 min read
Updated: Aug 12
Find out what the current environment means for your business in our economic update July 2025
Here are some practical tips to stay prepared and make confident financial decisions amid economic uncertainty.
Australia’s job market is slowing - what that means for you
The latest June 2025 figures show:
Unemployment has risen to 4.3% - the highest in over 3 years
Full-time jobs are down, while part-time roles have increased
Work hours have dropped across the economy
This signals a cooling private sector and potential slow-down in household spending, key factors for small and family, run businesses.
Stagflation: the RBA’s new concern
The Reserve Bank is now warning of stagflation - a rare mix of:
Rising costs
Slowing economic growth
Climbing unemployment
That means tough decisions ahead: the RBA may cut interest rates soon, but inflation remains sticky - especially with energy prices rising.
What’s energy got to do with it?
Plenty! Businesses are already feeling the pinch:
Power bills are rising, especially in regional and rural areas
Unpredictable grid outages affect cold storage, irrigation, and workshops
No clear roadmap for small business support during the energy transition
Energy pressures are directly impacting productivity, risk planning, and confidence.
What you can do right now
Consider each factor in this Economic update July 2025, then:
Revisit your cash flow plan factor in higher energy costs, possible drops in sales, and delays in customer payments.
Plan for energy risk
Look into solar, battery, or generator options
Document blackouts or price hikes
Ask us about rebates or capital allowances
Focus on workforce value if you’re hiring, ensure every role directly supports profitability or long-term strategy.
Prepare for interest rate movement. We may see rate cuts soon - great for borrowers, but tricky if inflation stays high.
Our Role: helping you stay ahead
At Future Accounting, we specialise in helping small and family businesses make confident decisions - especially in response to difficult economic conditions.
If you’d like us to:
Run a cash flow or energy cost stress test
Review your wage planning or contractor costs
Help you prepare for an interest rate cut or business loan.
Book a check-in session today. We’re here to help.
