The Australian Bureau of Statistics (ABS) launched the most recent labour power knowledge right this moment (July 23, 2026) – Labour Drive, Australia – for June 2026 – which supplied combined alerts in regards to the state of the labour market. Whereas employment progress was constructive, it was biased to part-time work, which is maybe signalling a weakening as the primary adjustment sometimes made by employers is to cut back hours of labor earlier than they minimize jobs general. Nevertheless, on the opposite facet, participation grew, which implies extra employees are both working or searching for work. Nevertheless, the bias in direction of part-time work was manifest within the rising underemployment fee. There at the moment are 10.9 per cent of accessible labour not getting used (both unemployed or underemployed), which makes a farce of the RBA’s claims that the labour market is tight. There’s substantial scope for extra job creation given the slack that’s current. There’s substantial scope for extra job creation given the slack that’s current.
The abstract seasonally-adjusted statistics for June 2026 are:
- Employment rose 76,300 (0.5 per cent).
- Full-time employment rose 29.3 thousnd (0.3 per cent).
- Half-time employment rose 47 thousand (1.0 per cent).
- Unemployment rose by 12,700 to 686,800 individuals.
- The unemployment fee was steady at 4.4 per cent when rounded to 1 decimal place – truly moved from 4.371 per cent to 4.428 per cent).
- The participation fee rose 0.3 factors to 67 per cent.
- The Employment-population ratio rose 0.3 factors to 64 per cent.
- Month-to-month hours labored rose 4.9 million (0.2 per cent).
- Underemployment rose 0.2 factors to six.5 per cent (rising 35.8 thousand to 1009.6 thousand).
- The Broad Labour Underutilisation fee (the sum of unemployment and underemployment) rose 0.2 factors to 10.9 per cent.
- General, there are 1,696.4 thousand folks both unemployed or underemployed.
The ABS press launch – Unemployment fee stays at 4.4% in June – famous that:
The seasonally adjusted unemployment fee remained at 4.4 per cent in June …
In June, we recorded a 76,000 particular person rise in employment, pushed by a 47,000 particular person rise in part-time employment …
The variety of unemployed rose by 13,000 folks in June, which mixed with the expansion in employment, led to the participation fee rising by 0.3 share factors to 67.0 per cent in June …
The underemployment fee rose 0.2 share factors to six.5 per cent in June.
Abstract
1. Larger employment progress however biased in direction of part-time work, which can sign the primary stage of a significant slowdown as employers sometimes adjusts hours down earlier than shedding precise jobs.
2. The part-time bias manifests as an increase in underemployment – so whereas the official unemployment fee remained at 4.4 per cent, the diploma of slack within the labour market rose, with the broad labour underutilisation rising by 0.2 factors to 10.9 per cent.
3. Greater than one million employees are underemployed now in Australia and practically 1.7 million employees are both unemployed or underemployed. That may be a very slack labour market.
Employment progress biased in direction of part-time jobs
- Employment rose 76,300 (0.5 per cent).
- Full-time employment rose 29.3 thousnd (0.3 per cent).
- Half-time employment rose 47 thousand (1.0 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 over the past 6 months which helps to see the underlying pattern.
The Employment-to-Inhabitants ratio supplies 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 power shifts with each underlying inhabitants progress and the participation swings.
The next graph exhibits the Employment-Inhabitants ratio rose 0.2 factors to 64 per cent in June.
The following 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 modifications have been:
- 2022 – 46 thousand
- 2023 – 30.7 thousand
- 2024 – 30.3 thousand
- 2025 – 12.6 thousand
- 2026 thus far – 26.9 thousand
Month-to-month hours labored rose 4.9 million (0.24 per cent) in June 2026
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 rose by 12,700 to 686,800 individuals
The unemployment fee was steady at 4.4 per cent when rounded to 1 decimal place – truly moved from 4.371 per cent to 4.428 per cent)
The next graph exhibits the evolution of the official unemployment fee since 1980.
Broad labour underutilisation – rose 0.2 factors to 10.9 per cent in June 2026
- Underemployment rose 0.2 factors to six.5 per cent (rising 35.8 thousand to 1009.6 thousand).
- The Broad Labour Underutilisation fee (the sum of unemployment and underemployment) rose 0.2 factors to 10.9 per cent.
- General, there are 1,696.4 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 – improved
There was a considerable decline in full-time employment for youngsters in June.
- Full-time employment fell 6.7 thousand (-3.5 per cent).
- Half-time employment rose 13.7 thousand (2 per cent).
- Complete teenage (15-19) employment rose 6.9 thousand (0.8 per cent).
The next desk summarises the shifts within the teenage labour marketplace for the month and over the past 12 months.
To place these modifications right into a scale perspective (that’s, relative to measurement of the teenage labour power) 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 June 2026 have been:
- Males: 47.7 per cent – up 0.1 level.
- Females: 52.4 per cent – up 0.6 factors.
- Complete: 50 per cent – up 0.4 factors.
Conclusion
My customary warning to take care in decoding month-to-month labour power modifications – they will fluctuate for quite a lot of causes and it’s imprudent to leap to conclusions on the again of a single month’s knowledge.
- The labour market exhibited combined alerts in June.
- Whereas employment progress was constructive, it was biased to part-time work, which is maybe signalling a weakening as the primary adjustment sometimes made by employers is to cut back hours of labor earlier than they minimize jobs general.
- Nevertheless, on the opposite facet, participation grew, which implies extra employees are both working or searching for work.
- There at the moment are 10.9 per cent of accessible labour not getting used (both unemployed or underemployment), which makes a farce of the RBA’s claims that the labour market is tight.
- There’s substantial scope for extra job creation given the slack that’s current.
That’s sufficient for right this moment!
(c) Copyright 2026 William Mitchell. All Rights Reserved.
