I’m late at present as a result of I’m penning this in London after travelling the final 24 hours. The Australian Bureau of Statistics (ABS) launched the most recent labour drive knowledge at present (February 19, 2026) – Labour Pressure, Australia – for January 2026 – which confirmed that the labour market was primarily regular in that employment stored tempo with provide, and the participation fee was secure. There was some shuffling inside complete employment to full-time jobs, with a moderately giant fall in part-time work. However that truth, underemployment nonetheless rose. It stays a undeniable fact that with 10 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.
The abstract seasonally-adjusted statistics for January 2026 are:
- Employment rose 17,800 (0.1 per cent).
- Full-time employment rose 50,500 thousand (0.5 per cent).
- Half-time employment fell 32,700 thousand (-0.7 per cent).
- Unemployment fell 1,900 (0 per cent) to 624,700.
- The unemployment fee remained at 4.1 per cent.
- The participation fee remained at 66.7 per cent.
- The Employment-population ratio fell 0.1 level to 63.9 per cent.
- Month-to-month hours labored rose 11 million (0.56 per cent).
- Underemployment rose 0.2 factors to five.9 per cent (rising by 28.6 thousand to 903.6 thousand).
- The Broad Labour Underutilisation fee (the sum of unemployment and underemployment) rose 0.2 factors to 9.97 per cent.
- Total, there are 1,528.38 thousand folks both unemployed or underemployed.
The ABS press launch – UUnemployment fee stays at 4.1% – famous that:
The seasonally adjusted unemployment fee remained at 4.1 per cent in January …
Employed folks grew by 18,000. Full-time employment rose by 50,000 folks, partly offset by a fall of 33,000 folks in part-time employment …
The participation fee of 66.7 per cent was 0.6 proportion factors decrease than the file excessive measured in January 2025 …
The underemployment fee rose 0.2 proportion factors to five.9 per cent in January. The underutilisation fee additionally grew by 0.2 proportion factors to 10.0 per cent.
Abstract
1. Pretty static month after the insanity of the Xmas season.
2. Whole labour underutilisation (sum of unemployment and underemployment) rose to 10 per cent, which signifies the extent of the wastage.
Employment development maintains tempo with underlying inhabitants development
Employment rose 17.8 thousand whereas the labour drive rose 15.9 thousand, which meant that unemployment fell marginally.
- Employment rose 17,800 (0.1 per cent).
- Full-time employment rose 50,500 thousand (0.5 per cent).
- Half-time employment fell 32,700 thousand (-0.7 per cent).
The next graph exhibits the expansion in complete, full-time, and part-time employment for the final 24 months.
The next desk exhibits the shifts during the last 6 months which helps to see the underlying pattern.
The Employment-to-Inhabitants ratio offers a measure of the state of the labour market that’s unbiased of the availability shifts within the labour market (pushed by the shifts within the participation fee).
The underlying working age inhabitants grows steadily whereas the labour drive shifts with each underlying inhabitants development and the participation swings.
The next graph exhibits the Employment-Inhabitants ratio fell 0.1 level to 63.9 per cent, the lowest it has been since January 2024.
The subsequent graphs present the typical month-to-month change in complete employment (first graph) and full- and part-time employment (second graph).
Clearly, the one-month outcome for 2026 doesn’t inform us a lot but.
For complete employment the month-to-month common modifications had been:
- 2022 – 44.8 thousand
- 2023 – 30.8 thousand
- 2024 – 32.2 thousand
- 2025 – 13.8 thousand
- 2026 to this point – 17.8 thousand
Month-to-month hours labored rose 11 million (0.56 per cent) in January 2026
Stronger on the again of development in full-time employment.
The next graph exhibits the expansion in month-to-month hours labored for the final 24 months, with the straight line being a easy linear regression to point pattern.
Unemployment fell 1,900 to 624,700 in January
The unemployment fee was regular at 4.1 per cent.
Primarily, labour demand stored tempo with the expansion in provide.
The next graph exhibits the evolution of the official unemployment fee since 1980.
Broad labour underutilisation – rose 0.2 factors in January
- Underemployment rose 0.2 factors to five.9 per cent (rising by 28.6 thousand to 903.6 thousand).
- The Broad Labour Underutilisation fee (the sum of unemployment and underemployment) rose 0.2 factors to 9.97 per cent.
- Total, there are 1,528.38 thousand folks both unemployed or underemployed.
The next graph exhibits the evolution of underemployment and the Broad labour underutilisation fee since 1980.
Teenage labour market – bucks total pattern January 2025
In December, the teenage labour market went backwards regardless of the comparatively robust total outcome.
This month, youngsters noticed part-time employment develop considerably as the general part-time employment fell.
- Full-time employment rose 3.9 thousand (2.0 per cent).
- Half-time employment rose 28.3 thousand (1.7 per cent).
- Whole teenage (15-19) employment rose 15.3 thousand (1.8 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 modifications right into a scale perspective (that’s, relative to dimension of the teenage labour drive) the next knowledge studies the shifts within the Employment-Inhabitants ratio for youngsters.
The Teenage Employment-Inhabitants ratios and their month-to-month modifications in January 2025 had been:
- Males: 47.8.2 per cent – up 1.6 factors.
- Females: 53.3 per cent – down 0.1 level.
- Whole: 50.5 per cent – up 0.8 factors.
Conclusion
My customary warning to take care in deciphering month-to-month labour drive modifications – they’ll fluctuate for various causes and it’s imprudent to leap to conclusions on the again of a single month’s knowledge.
- The January outcome was regular in that employment stored tempo with provide, and the participation fee was secure.
- There was some shuffling inside complete employment to full-time jobs, with a moderately giant fall in part-time work.
- However that truth, underemployment nonetheless rose.
- It stays a undeniable fact that with 10 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 present!
(c) Copyright 2026 William Mitchell. All Rights Reserved.
