Australia’s unemployment slightly increases in June

Australia experienced a slight increase in the seasonally adjusted unemployment rate to 4.1 per cent in June. Employment rose by approximately 50,000 people, while the number of unemployed grew by 10,000. The participation rate experienced a slight increase to 66.9 per cent, approaching the historical peak of 67.0 per cent recorded in November 2023.

Bjorn Jarvis, head of labour statistics at ABS, noted that the employment-to-population ratio increased to 64.2 per cent, close to the historical peak of 64.4 per cent from November 2023. Despite the slight rise in unemployment, the labour market remains tight, supported by high job vacancy levels.

June saw a 0.8 per cent increase in seasonally adjusted monthly hours worked, aligning with recent employment growth. More people worked reduced hours due to illness, with 4.5 per cent affected, compared to the pre-pandemic average of 3.6 per cent. Conversely, fewer people took annual leave in June, contributing to the overall rise in hours worked.

The seasonally adjusted underemployment rate fell to 6.5 per cent, and the underutilisation rate dropped to 10.5 per cent. Despite a slight year-on-year (YoY) increase in the underutilisation rate, it remains significantly lower than pre-pandemic levels.

Trend data indicated that the unemployment rate held steady at 4.0 per cent, with employment growing faster than the pre-pandemic average. The employment-to-population ratio and participation rate remained high, reflecting ongoing labour market strength.

Attribution: Australian Bureau of Statistics (ABS)