Australia’s seasonally adjusted unemployment rate held steady at 4.1 per cent in January, according to the latest figures released by the Australian Bureau of Statistics. This figure reflects a stable labour market amidst shifting employment dynamics. The number of employed individuals increased by 17,800 during the month.
Full-time employment experienced a significant rise, with 50,000 new positions added. However, this growth was partially offset by a decrease of 33,000 people in part-time employment. The participation rate, which measures the proportion of Australians either employed or actively looking for work, dipped to 66.7 per cent. This represents a 0.6 percentage point decrease from the record high observed in January 2023.
Underemployment, which refers to individuals who are employed but seeking additional hours, saw an increase. The underemployment rate rose by 0.2 percentage points to 5.9 per cent in January. Consequently, the underutilisation rate, a broader measure incorporating both unemployment and underemployment, also grew by 0.2 percentage points, reaching 10.0 per cent. Youth underemployment experienced a notable increase of 1 percentage point to 14.8 per cent, reversing much of the decline recorded in the previous month.
Across different states and territories, Victoria, Tasmania, and the Northern Territory recorded the highest unemployment rates at 4.5 per cent. The Australian Capital Territory followed closely at 4.3 per cent, while Queensland registered 4.2 per cent, New South Wales 4 per cent, and Western Australia 3.9 per cent. South Australia reported the lowest unemployment rate in the country at 3.8 per cent.
