Tourism jobs typically done by overseas backpackers were already in decline before Home Affairs Minister Tony Burke slowed down the processing of working holiday maker visas.

Interest rate rises so far this year have caused a double-digit plunge in full-time female employment in a predominantly hospitality-based sector that employs foreigners living in Australia temporarily.

The decline in tourism-related jobs, even during a peak season for travel, was occurring before Mr Burke in August announced the Federal Government would prioritise on-shore applications for working holiday-maker visas.

The overall number of full-time jobs in the tourism sector plunged by 30,500 over the three months to the end of June, making a 9 per cent fall during the quarter, new Australian Bureau of Statistics data revealed on Wednesday.

The Reserve Bank’s rate rises in February, March and May are particularly hurting women working full-time in a tourism job with their numbers plunging by 11.7 per cent as 18,200 positions were lost.

During that period, the number of men working full-time dived by 6.7 per cent as 12,300 jobs were shed.

The sharp decline in full-time jobs in the tourism industry was offset by a 7.6 per cent increase in new part-time positions and the creation of 29,300 new jobs with fewer hours.

The tourism industry overall suffered a 0.2 per cent employment drop in the June quarter as 1200 positions were lost.

The 726,300 people with a tourism job in June was the lowest since September 2025.

This occurred as Australia’s broader labour market saw a 0.6 per cent increase with 93,400 new jobs created during a period which covered the Easter holidays in April and the start of the winter ski season.

Sports and recreational services had the steepest quarterly percentage decline of 2.5 per cent with 900 jobs lost.

The accommodation sector saw a 0.5 per cent fall with the loss of 700 jobs over three months.

Pubs, clubs, taverns and bars saw a 1.1 per cent plunge, leading to the loss of 500 jobs, as retailers saw a 0.7 per cent fall and the loss of 900 jobs.

Hospitality jobs have been the hardest hit as a result of the rate rises, with five of the tourism industry’s 12 sectors seeing jobs lost.

Employment still increased in cafes and restaurants, education and training, and transport.

With a record 2.9 million temporary visas holders already in Australia, Mr Burke is expected to announce on Thursday new restrictions on those planning to visit the country for at least 12 months on a working visa, with the tourism industry particularly reliant on overseas tourists to serve other tourists.

The Tourism & Transport Forum and Accommodation Australia last week joined the National Farmers’ Federation and the Australian Chamber of Commerce and Industry in appealing to the Government to reconsider a slowdown in processing working holiday maker program visas.