Australia's unemployment rate steady at 4.2% in August: ABS

“Employment fell by 5,000 people and the number of unemployed fell by 1,000 people in August. This meant that the unemployment rate remained steady at 4.2 per cent whilst the participation rate fell by 0.1 percentage points to 66.8 per cent,” Sean Crick, ABS head of labour statistics, said.

The employment-to-population ratio fell by 0.1 percentage points to 64.0 per cent. A fall in full-time employment (-41,000 people) drove the overall drop in employment numbers. Meanwhile, part-time employment saw a 36,000 person rise.

Full-time employment declined by 30,000 among women and by 11,000 among men in August. Meanwhile, part-time employment increased, with 18,000 more women and 17,000 more men taking on part-time roles.

“Hours worked fell 0.4 per cent in August, supported by fewer people working full-time hours this month,” Crick said.

The underemployment rate fell by 0.1 percentage points to 5.7 per cent in August. This was 0.8 percentage points lower than August 2024 and 3.0 percentage points lower than March 2020, the ABS said on its website.

The underutilisation rate, which combines the unemployment and underemployment rates, fell by 0.1 percentage points to 9.9 per cent. This was 0.7 percentage points lower than August 2024, and 4.0 percentage points lower than March 2020.

In August, the trend unemployment rate rose to 4.3 per cent, while employment increased by 18,000 people (0.1 per cent), marking a 1.7 per cent rise over the past year. Monthly hours worked also grew by 0.1 per cent, in line with employment growth, with annual growth in both hours worked and employment at 1.7 per cent. The underemployment rate remained steady at 5.8 per cent, and the underutilisation rate edged down to 10.0 per cent.

“In trend terms, the participation rate remained at 66.9 per cent in August, while the employment-to-population ratio stayed at 64.1 per cent,” Crick said.

ALCHEMPro News Desk (RR)