Australia’s labour market is showing signs of strain as it delivered a mixed result in June, with unemployment rising but more people entering the workforce, according to new data from the Australian Bureau of Statistics.
The unemployment rate increased to 4.3%, up from 4.1% in May and 4.0% in June 2024 – marking the highest level since November 2021. The underemployment rate also ticked up to 6.0%, compared to 5.9% the previous month.
At the same time, the participation rate climbed to 67.1%, up from 67.0% in May and 66.7% a year earlier – suggesting more people are looking for work or re-entering the job market.
The Australian Industry Group, an employer association, said the rise in unemployment reflected soft conditions in the private sector. CEO Innes Willox noted the public sector has been propping up employment in recent quarters and warned that without stronger private investment, labour demand could continue to weaken.
The Reserve Bank of Australia acknowledged the labour market slowdown in its July monetary policy statement. While it still expects unemployment to remain in the low 4s through to 2026, it described current risks as “finely balanced”.