Damon Mcknight
Australia's labour force is a dynamic and diverse group of individuals who contribute to the country's economic growth and development. As of June 2025, the total number of employed people in Australia was 14,637,800, with a labour force participation rate of 64.2%. This rate includes individuals aged 15 and older who are actively engaged in producing goods and services. The female labour force in Australia has also seen a steady increase, reaching 47.447% in 2024, the highest percentage recorded. However, there have been calls for new ways to measure the labour market, as traditional definitions of jobs, employment, and unemployment may not capture the evolving nature of work, including the rise of independent contractors and flexible work arrangements.
| Characteristics | Values |
|---|---|
| Number of people employed | 14.6 million (June 2025) |
| Full-time workers | 10.1 million (June 2025) |
| Part-time workers | 4.5 million (June 2025) |
| Employment-to-population ratio | 64.2% (June 2025) |
| People who wanted to work more hours | 1.3 million (May 2025) |
| People who wanted a job | 1.1 million (aged 18-75) (May 2025) |
| People who did not want a job | 2.1 million (May 2025) |
| Total population | 27 million (Dec 2023) |
| Unemployment rate | 4.1% (Jan 2025) |
| Labour force participation rate | 66.7% (Jan 2025) |
| Number of people employed | 12 million (2021) |
| Labour force participation rate | 61.1% (2021) |
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What You'll Learn
In June 2025, Australia's labour force participation rate was 64.2%
Australia's labour force participation rate is a key indicator of the country's socio-economic status. It provides insight into the strength of the economy and the social characteristics of the population. In June 2025, Australia's labour force participation rate, or employment-to-population ratio, was 64.2%. This percentage represents the proportion of the population that is employed, whether full-time or part-time.
The labour force participation rate is distinct from the unemployment rate, which represents the percentage of people actively seeking employment relative to the labour force (both employed and unemployed individuals over the age of 15). In January 2025, Australia's unemployment rate was 4.1%.
Fluctuations in the labour force participation rate can be influenced by various factors, such as the age structure of the population, the economic base and employment opportunities available, and the education and skill level of the population. For example, in 2021, Australia's labour force participation rate was 61.1%, lower than that of Greater Capital Cities, which stood at 62.8%.
Labour force statistics also provide insights into employment dynamics. In June 2025, Australia's total employment increased by 22,800 people (0.2%) to 14,637,800 people. This growth resulted from approximately 381,000 people entering employment and 421,000 people leaving employment between May and June 2025. These monthly changes can be significant, especially during periods like the COVID-19 pandemic, which caused substantial fluctuations in employment trends.
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In May 2025, 1.3 million Australians preferred to work more hours
The Australian labour market has been subject to large month-to-month changes during the COVID-19 pandemic, resulting in multiple trend breaks. This volatility has made it difficult to accurately estimate labour force trends using spreadsheets. In June 2025, the employment-to-population ratio was 64.2%. This ratio provides a measure of employment relative to the size of the population.
The Labour Force, Australia, Detailed report provides monthly and quarterly data on various labour force indicators, including hours, regions, families, job search, job duration, casual work, industry, and occupation. The June 2025 issue of this report included new modelled age and sex breakdowns of unemployment, employment, and NILF estimates at the SA4 level. The SA4 estimates are designed to be additive to the employment, unemployment, and not-in-labour-force totals for each state, territory, and Australia as a whole.
The Australian Bureau of Statistics (ABS) uses the Rao-Yu time-series model to produce the modelled estimates, which provides more reliable levels of unemployment and employment. This model draws on administrative data, including de-identified Single-Touch Payroll data from the Australian Taxation Office and de-identified Youth Allowance and JobSeeker recipients data from the Department of Social Services.
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In 2021, 59% of Australians worked full-time
The remaining 33% of the workforce were part-time employees, numbering 3,962,544. Overall, 94.9% of the labour force was employed, with the remaining 5.1% unemployed.
The size and composition of a country's labour force are important indicators of its socio-economic status. The levels of full or part-time employment, unemployment, and labour force participation reflect the strength of the local economy and the social characteristics of the population.
Several factors influence the number of people in the workforce, including the age structure of the population, the economic base and employment opportunities available, and the education and skill levels of the population.
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In 2023, Australia's population was 27 million
Australia's population as of September 2023 was 26.8 million, which was a 2.5% increase from the previous year. This growth rate was the highest recorded since the 1950s. The population growth was driven by a net inflow of 549,000 overseas migrants, mainly students, as the country opened up after the pandemic-era border restrictions. Western Australia recorded the highest population growth rate of 3.3%, followed by Victoria (2.9%) and Queensland (2.7%).
The population of Australia has been steadily increasing over the years. In 1901, the population was 3.8 million, and by 2021, it had grown to 25.7 million. The urban population has also increased significantly, from 58% in 1911 to 90% in 2021. The median age of the population in 2021 was 38.5 years, with a life expectancy at birth of 81.1 years for males and 85.1 years for females. The fertility rate, however, has decreased from 3.1 births per woman in 1921 to 1.7 in 2021.
As of May 2025, the latest data available, Australia had an estimated labour force of 14.7 million people. This number includes both full-time and part-time workers. The employment-to-population ratio in June 2025 was 64.2%. The labour force participation rate is a key indicator of the health of the economy and the job market.
In June 2025, full-time employment increased by 15,800 to 10,086,300 people, and part-time employment increased by 7,000 to 4,551,500 people. These numbers indicate a healthy job market with more people finding employment. Additionally, the number of people seeking employment but unavailable to start within four weeks due to long-term health conditions or disabilities has decreased.
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In 2025, the unemployment rate increased to 4.1%
Australia's labour force has been subject to large month-to-month changes due to the COVID-19 pandemic. In June 2025, the employment-to-population ratio remained at 64.2%. This ratio provides a measure of employment relative to the population size. In trend terms, employment increased by 22,800 people (0.2%) to 14,637,800 people. This was the result of around 381,000 people entering employment and around 421,000 people leaving employment.
The unemployment rate in Australia has been subject to fluctuations in recent years. In 2024, the rate reached a 48-year low of 3.4%, with wages growth momentum picking up significantly. However, by the end of 2024, the unemployment rate had increased to 4%, and wages growth had moderated to around 3.5%. This slowing in wages growth occurred alongside a relatively stable unemployment rate, suggesting that Australia's NAIRU is lower than previously assumed.
NAIRU may have declined in Australia due to various factors, including the post-pandemic context, increased globalisation, and a higher supply of goods and services. Additionally, technological developments and the growth of digital job sites have made it easier for businesses to find suitable workers, increasing the pool of available labour. Lower union membership has also reduced the bargaining power of workers, which may have contributed to a lower NAIRU.
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Frequently asked questions
In June 2025, there were 14,637,800 people in the Australian labour force.
The labour force participation rate in Australia for people aged 15 and above was 67.171% in 2023. For people aged 15-24, the rate was 70.817% in the same year.
In June 2025, the employment-to-population ratio was 64.2%.
In 2024, females made up 47.447% of the total labour force in Australia.
