Cairns Economic Monitor - October 2026
Cairns’ economy faces mounting cost pressures and a mixed outlook, with early signs of recovery in construction offset by rising unemployment and persistent inflation.
Meanwhile, the local economy presents a mixed picture. Employment is growing, but unemployment has climbed to 5.2% as more people enter the workforce than jobs can absorb. Inflation remains elevated and interest rates have risen to 4.6%, adding pressure on households and businesses.
There are some encouraging signs in construction, with building approvals increasing for a second consecutive month, although they remain 19% lower than a year ago, highlighting the ongoing challenges facing the sector.