At this time (January 22, 2026), the Australian Bureau of Statistics (ABS) launched the newest labour power information – Labour Drive, Australia – for December 2025 – which confirmed a comparatively robust enhance in employment and the rising participation price – each good indicators. Taken collectively the demand-side of the labour market outstripped the expansion within the working age inhabitants and, in consequence, unemployment fell. The rise in employment was focused on full-time employment, which meant that working hours rose and underemployment fell considerably. Nonetheless, the truth is that it’s nonsensical to argue that Australia is near full employment.
The abstract seasonally-adjusted statistics for December 2025 are:
- Employment rose 65,200 (0.4 per cent).
- Full-time employment rose 54.8 thousand (0.5 per cent).
- Half-time employment rose 10.4 thousand (0.2 per cent).
- Unemployment fell 29,800 (-4.5 per cent) to 628,600.
- The unemployment price fell 0.2 factors to 4.1 per cent.
- The participation price rose 0.1 level to 66.7 per cent.
- The Employment-population ratio rose 0.2 factors to 64 per cent.
- Month-to-month hours labored rose 7.6 million (0.38 per cent).
- Underemployment fell 0.5 factors to five.7 per cent (falling by 68.7 thousand to 873.2 thousand).
- The Broad Labour Underutilisation price (the sum of unemployment and underemployment) fell 0.7 factors to 9.8 per cent.
- General, there are 1,501.8 thousand folks both unemployed or underemployed.
The ABS press launch – Unemployment price falls to 4.1% – famous that:
The seasonally adjusted unemployment price fell to 4.1 per cent in December …
Employed folks have been up 65,000 in December, with each full-time (55,000 folks) and part-time (10,000 folks) employment contributing to this rise …
This month we noticed extra 15-24 12 months olds shifting into employment, contributing to the rise in general employment and the autumn within the unemployment price …
The expansion in employment was pushed by male employment, which rose by 49,000 folks, whereas feminine employment recorded a smaller enhance of 17,000 folks ….
In December 2025, seasonally adjusted month-to-month hours labored reached a report excessive of over 2 billion hours for the primary time.’
Underemployment and underutilisation each fall in DecemberThe underemployment price fell 0.5 share factors to five.7 per cent in December …
The underutilisation price, which usually reveals higher month‑to‑month adjustments than different labour power indicators, fell to 9.8 per cent in December, down 0.7 share factors. …
Abstract
1. A robust outcome for the ultimate month of 2025 –
2. Each full-time and part-time employment rising, with robust hours development and the next proportion of the working age inhabitants coming into the lively labour power.
3. Complete labour underutilisation (sum of unemployment and underemployment) dropped considerably.
Employment development ends 12 months on a excessive word
Robust employment development accompanied by rising participation is an effective end result.
- Employment rose 65,200 (0.4 per cent).
- Full-time employment rose 54.8 thousand (0.5 per cent).
- Half-time employment rose 10.4 thousand (0.2 per cent).
The next graph reveals the expansion in complete, full-time, and part-time employment for the final 24 months.
The next desk reveals the shifts during the last 6 months which helps to see the underlying development.
The Employment-to-Inhabitants ratio offers a measure of the state of the labour market that’s unbiased of the provision shifts within the labour market (pushed by the shifts within the participation price).
The underlying working age inhabitants grows steadily whereas the labour power shifts with each underlying inhabitants development and the participation swings.
The next graph reveals the Employment-Inhabitants ratio fell 0.2 factors to 63.8 per cent, the lowest it has been since January 2024.
The subsequent graphs present the common month-to-month change in complete employment (first graph) and full- and part-time employment (second graph).
For complete employment the month-to-month common adjustments have been:
- 2022 – 44.6 thousand
- 2023 – 30.8 thousand
- 2024 – 32.2 thousand
- 2025 – 13.8 thousand
The December 2026 outcome finishes a really poor 12 months on a excessive word.
Month-to-month hours labored rose 7.6 million (0.38 per cent) in December 2025
The next graph reveals the expansion in month-to-month hours labored for the final 24 months, with the straight line being a easy linear regression to point development.
Unemployment fell 29,800 to 628,600 in December
The unemployment price fell 0.2 factors to 4.1 per cent.
It might have fallen by extra if the participation price had not risen.
However stronger employment development (significantly full-time) and rising participation alerts are strengthening labour market.
The next graph reveals the evolution of the official unemployment price since 1980.
Broad labour underutilisation – fell 0.5 factors in December
A robust outcome pushed by the numerous enhance in full-time employment and dealing hours.
- Underemployment fell 0.5 factors to five.7 per cent (falling by 68.7 thousand to 873.2 thousand).
- The Broad Labour Underutilisation price (the sum of unemployment and underemployment) fell 0.7 factors to 9.8 per cent.
- General, there are 1,501.8 thousand folks both unemployed or underemployed.
The next graph reveals the evolution of underemployment and the Broad labour underutilisation price since 1980.
Teenage labour market – additional deterioration in December 2025
Regardless of the comparatively robust general outcome, the teenage labour market went backwards.
- Full-time employment rose 0.3 thousand (0.2 per cent).
- Half-time employment fell 12.4 thousand (-1.8 per cent).
- Complete teenage (15-19) employment fell 12.1 thousand (-1.4 per cent).
The next desk summarises the shifts within the teenage labour marketplace for the month and during the last 12 months.
To place these adjustments right into a scale perspective (that’s, relative to measurement of the teenage labour power) the next information studies the shifts within the Employment-Inhabitants ratio for youngsters.
The Teenage Employment-Inhabitants ratios and their month-to-month adjustments in December 2025 have been:
- Males: 46.2 per cent – down 1.9 factors.
- Females: 53.5 per cent – up 0.5 factors.
- Complete: 49.7 per cent – down 0.7 factors.
Conclusion
My normal warning to take care in decoding month-to-month labour power adjustments – they’ll fluctuate for numerous causes and it’s imprudent to leap to conclusions on the again of a single month’s information.
- The December outcome ended the 12 months on a shiny word after a reasonably mediocre 12 months general.
- All the indications strengthened – stronger employment development (focused on full-time employment), rising participation, and falling unemployment and underemployment.
- It stays a undeniable fact that with 9.8 per cent of obtainable labour not getting used it’s ludicrous to speak about Australia being near full employment. There may be substantial scope for extra job creation given the slack that’s current.
That’s sufficient for at the moment!
(c) Copyright 2026 William Mitchell. All Rights Reserved.
