Australia's labour market is staying relatively tight this year despite the soft economic growth.
The Australian Bureau of Statistics (ABS) confirmed the seasonally adjusted unemployment rate remained at 4.4 per cent in June, with KPMG Australia senior economist Terry Rawnsley saying the data shows demand for labour remains robust.
The ABS data showed total employment growing by 76,000 people, driven by a 47,000 person rise in part-time employment.
ABS head of labour statistics Sean Crick said part of this growth in employment in June came from those who were waiting to start a job in May.
“This represents a stronger June movement than has been observed in recent years,” Crick said.
“We also continued to see higher numbers of people remaining employed this June, following elevated levels in the recent few months.
“The number of unemployed rose by 13,000 people in June, which combined with the growth in employment, led to the participation rate rising by 0.3 percentage points to 67.0 per cent in June."
Rawnsley at KPMG said the employment boom may have been driven by businesses delaying start times amid uncertainty stemming from the US-Iran war.
“The unemployment rate remained steady at 4.4 per cent and the participation rate rose from 66.7 per cent to 67.0 per cent, marking the largest monthly increase since April 2025,” Rawnsley noted. “People aged 55–64 recorded the strongest annual growth in participation, with the rate increasing by 0.8 percentage points to 70.6 per cent.”
The underemployment rate rose 0.2 percentage points to 6.5 per cent in June.
Hours worked up 0.2 per cent in June
Crick added that the number of part-time hours worked grew 1.2 per cent this month, with full-time hours worked remaining flat.
“Annually, employment rose 1.7 per cent from June 2025, and hours worked grew 1.8 per cent,” Crick said.
Trend unemployment rate grew to 4.4 per cent by 0.2 percentage points, while hours worked remained flat.
Both the trend underemployment and underutilisation rates increased 0.1 percentage points, to 6.3 per cent and 10.7 per cent respectively.
The ABS added it is modernising how it collects data in its Labour Force Survey, including moving to new systems and further developing its suite of Labour Force products.
“The transition to our new system will give survey participants a modern, easy and secure way to complete the Labour Force Survey,” Crick said.