Australian shares ended slightly lower on Thursday, weighed down by sharp declines among information technology and mining stocks, but managed to reverse some of the losses from earlier in the session after labor data for September came in weaker than expected.

The S&P/ASX 200 Index fell 8.20 points, or 0.1%, to close at 8,719.70.

Australia's seasonally adjusted unemployment rate rose by 10 basis points from the previous month to 4.7% in September, hitting the highest level in five years. The economy shed 39,300 jobs over the month, compared with a Westpac forecast for employment to rise by 20,000.

ANZ said that while the data reduces the likelihood of another interest rate hike in November, the central bank's recent messaging suggests it may be more tolerant of higher unemployment amid persistently high inflation.

ASX-listed materials stocks fell 3.9% and information technology shares slid 3.7%, while the financials sector gained 2.2% following weak performance in Wednesday trading.

In other news, Australian job ads rose 0.6% in September from August, with the Australian Capital Territory recording the strongest monthly growth at 1.5%, according to a Seek report.

Separately, a Cotality report estimated that 39,747 homes sold nationally in September, down nearly 21% from a year earlier, as dwelling values across all capital cities fell below their previous peaks.

Meanwhile, Bloomberg reported that Goldman Sachs and UBS Group are among lenders who are tightening their approach to providing specialized financing to Australia's private credit managers.

On the corporate front, WiseTech Global (ASX:WTC) shares bucked the broader tech sell-off to end over 1% higher after the company resolved two regulatory investigations with no-action letters from the Australian Securities and Investments Commission.

Bank of Queensland (ASX:BOQ) shares closed nearly 6% higher after its total income for the 12 months through August increased 1% from the year-ago period to AU$1.68 billion.

DroneShield (ASX:DRO) ended more than 4% lower even after the company said it has already hit the midpoint of its 2026 revenue outlook range of AU$250 million to AU$270 million.