Youth unemployment held at 10.0%, while participation dipped slightly to 66.7%, painting a picture of a softening job market hidden behind the headline number.
Simple breakdown of the numbers
Underemployment jumped 0.4 points from recent months because full-time jobs dropped sharply by 56,500 to 10.1 million, while part-time roles rose 35,200 to 4.6 million suggesting that many workers are trapped in low-hour gigs.
Total hours worked fell to about 1.996 billion, and the smaller labour force (fewer people looking for work) masked the job losses, keeping unemployment from rising.
In plain terms, fewer people are jobless, but many employed folks aren’t getting enough hours, a sign the job market has “slack” or spare capacity.
Why this matters
This underemployment surge means slower wage growth, around 3.5% yearly, as workers have less bargaining power, helping keep inflation low but hurting household spending on things like groceries and bills.
Businesses can hire cheaply but face productivity dips if skills rust from part-time work; families feel squeezed with insecure incomes. It’s good news for the Reserve Bank of Australia (RBA) holding rates at 3.60%, avoiding rushed cuts, but bad if it drags on, risking a slowdown in 2026.
Looking ahead, RBA watches for more slack which could lead to rate cuts by February if it plunges further , while government training programs aim to fix skill gaps.
FAQs
What is underemployment in simple terms?
It’s when people have jobs but want more hours; at 6.2%, nearly 1 million Aussies are in this boat, making the market feel looser than 4.3% unemployment suggests.
Why did the labour force shrink?
Fewer new job seekers entered, balancing job losses to hold unemployment steady—common in cooling markets but hides underemployment pain.
Will jobs get worse in 2026?
Possible if global slowdown hits, but training and rate relief could help; watch next ABS release for trends.