Australia's unemployment rate rises to 4.3% in June 2025

Despite the uptick in joblessness, overall employment rose slightly by 2,000 people. This marginal increase followed a decline of 1,000 in May. Notably, part-time employment expanded by 40,200, offsetting a drop of 38,200 in full-time roles. The shift contributed to a net gain in jobs but underscored changing employment dynamics, ABS said in a press release.

The employment-to-population ratio held steady at 64.2 per cent, while the participation rate edged higher to 67.1 per cent. Hours worked fell 0.9 per cent in June, following a rise of 1.4 per cent in May.

“This month we saw a decrease in full time hours worked, down 1.3 per cent, associated with a 0.4 per cent fall in full time employees,” said Sean Crick, ABS head of labour statistics.

The underemployment rate rose by 0.1 percentage points (pp) to 6 per cent in June 2025. This was 0.4 pp lower than June 2024, and 2.7 percentage points lower than March 2020.

The underutilisation rate, which combines the unemployment and underemployment rates, rose by 0.3 pp to 10.3 per cent. This was 0.1 pp lower than June 2024, and 3.6 pp lower than March 2020.

The trend unemployment rate has risen to 4.2 per cent, after remaining at 4.1 per cent over the previous three months.

Employment grew by around 23,000 people (+0.2 per cent) in June, and 2.1 per cent over the last 12 months.

Monthly hours worked rose by 0.1 per cent, which has consistently been smaller than monthly employment growth since the start of 2025.

“In trend terms, the employment-to-population ratio remained at 64.2 per cent in June, while the participation rate stayed at 67 per cent. Both measures have remained largely unchanged since the start of 2025,” added Crick.

The underemployment rate remained at 5.9 per cent and the underutilisation rate remained at 10.1 per cent.

ALCHEMPro News Desk (SG)