Lexi Webster
Australia's unemployment rate is a hotly debated topic, with many arguing that the official statistics do not accurately reflect the number of people without jobs. The definition of unemployment in Australia is looking for work and not doing at least one hour of paid work a fortnight. This means that people who are not actively looking for work or are unavailable to start immediately, such as those requiring childcare support, are not considered unemployed and are, therefore, not included in the unemployment rate. In February 2021, there were 2.2 million people who wanted a job, but only 808,000 were considered officially unemployed, leaving 1.4 million people unaccounted for in the unemployment rate. The COVID-19 pandemic has also impacted employment rates, with large month-to-month changes and an increase in the number of people employed but away from work. As of June 2025, the employment-to-population ratio in Australia was 64.2%, with 14.7 million employed people.
| Characteristics | Values |
|---|---|
| Date | June 2025 |
| Total employed | 14,637,800 |
| Full-time employment | 10,086,300 |
| Part-time employment | 4,551,500 |
| Total unemployed | 808,000 |
| People who want to work but didn't look for work | 1,400,000 |
| People who want to work but are unable to | 2,200,000 |
| People who don't want to work | 2,100,000 |
| People who are retired or permanently unable to work | 1,900,000 |
| People who want to work more hours | 818,900 |
| People who changed jobs in the past year | 1,100,000 |
| Annual retrenchment rate | 1.9% |
| Employment-to-population ratio | 64.2% |
| Monthly hours worked in all jobs | 1,976,000,000 |
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What You'll Learn
Unemployment rate statistics
Australia's unemployment rate statistics are based on the Labour Force Survey, which collects data on employment, unemployment, and labour force participation. The survey defines unemployed people as those who are actively looking for work and available to start immediately. Those who are available to start work within a few weeks but not immediately are not considered unemployed. This definition is designed to help employers and economists address immediate problems, such as filling job vacancies.
In February 2021, the Australian Bureau of Statistics reported that there were 808,000 people without jobs who were actively seeking employment and ready to start immediately. This group constituted the officially unemployed population, which faced challenges in finding work due to age discrimination, lack of nearby public transportation, insufficient skills, and competition from other job seekers.
However, it is important to note that the official unemployment rate may not capture all individuals who are out of work. In February, during the strong economic recovery after the lockdowns, there were 2.2 million people who were not employed and wanted to work. Yet, only 808,000 of them were considered officially unemployed, leaving 1.4 million people categorized as "Not in the Labour Force," which does not affect the unemployment rate.
The labour force participation rate in Australia in 2021 was 61.1%, lower than the 62.8% rate in the Greater Capital Cities. Between 2016 and 2021, the number of employed individuals in Australia increased by 1,365,559, while the number of unemployed individuals decreased by 141,027. During the same period, the labour force grew by 1,224,532, representing a 10.7% increase.
The COVID-19 pandemic significantly impacted employment trends in Australia, resulting in large month-to-month changes. In June 2025, the employment-to-population ratio remained at 64.2%, with full-time employment increasing by 15,800 and part-time employment rising by 7,000 compared to the previous month. The total number of employed people in June 2025 was 14,637,800, with monthly hours worked across all jobs increasing to 1,976 million hours.
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Labour force participation rate
Australia's labour force participation rate is a measure of employment relative to the size of the population. In June 2025, the employment-to-population ratio remained at 64.2%. This ratio is calculated by taking into account the net inflows and outflows of people entering and leaving employment between two consecutive months.
The labour force participation rate does not include those who are not actively looking for work or are unable to start work immediately. This means that the unemployment rate does not account for people who are available to start work in four weeks but not immediately. For example, in February, there were 2.2 million people who weren't employed and wanted to work, but only 808,000 of them were considered officially unemployed. This discrepancy is because the labour force framework is designed to address the immediate concerns of employers and economists.
The labour force participation rate also does not include those who are retired or permanently unable to work. In Australia, there are 2.1 million people without a job who fall into this category. Additionally, there are 1.9 million people who are either retired or unable to work permanently. These individuals are not considered part of the labour force and, therefore, do not impact the unemployment rate.
It is important to note that the COVID-19 pandemic caused significant month-to-month changes in the labour force participation rate, resulting in multiple trend breaks. As a result, caution should be exercised when interpreting trend estimates from this period.
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People who want jobs but aren't considered unemployed
The Australian Bureau of Statistics (ABS) defines unemployed people as those who are actively looking for work and are available to start immediately. This definition is restrictive and leaves out millions of people who are not employed but are not considered unemployed.
In February, there were 2.2 million people who weren't employed and wanted to work, but only 808,000 of them were considered officially unemployed. This means there were 1.4 million people who weren't working and wanted to work but were categorized as "Not in the Labour Force," which does not affect the unemployment rate. This group includes people who are not in a paid job and are not looking for work, such as those studying, caring for children or family members, retired, or permanently unable to work.
Additionally, 110,000 people wanted to work but were unable to due to ill health, injury, or disability. These people are also not counted as officially unemployed. The unemployment rate is designed to help employers and economists solve immediate problems, which is why those who are not available to start work immediately are not considered unemployed.
The unemployment rate also does not account for people who are underemployed or unable to secure a position in their field of qualification. There may be an oversupply of white-collar workers, while there is a shortage of tradies, healthcare, and aged care workers. This structural unemployment occurs when there is a mismatch between the jobs available and the people seeking employment.
Furthermore, during an economic downturn, there is a lack of demand for goods and services, resulting in fewer jobs available for those seeking employment. Businesses may lay off existing workers or hire fewer new employees, making it harder for people looking for work to become employed.
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People who don't want jobs
While the majority of people in Australia are employed, there are still millions of people who are not. Of these, 2.2 million people wanted a job, but only 808,000 were considered officially unemployed. This leaves 1.4 million people who were not working and wanted a job but were not counted as unemployed.
There are many reasons why someone may not want to work, such as not wanting to interact with people or not wanting someone else to set deadlines for them. For those who do not want to work, there are still ways to earn an income. This could be through self-employment, such as becoming a small business owner, artist, trader, agent, or freelancer. Alternatively, there are jobs that are considered more relaxing or less demanding, such as tour guide, data entry, secretary, or door attendant. These jobs often provide more free time and less stress.
For those who are artists, this can include painters, musicians, writers, and other creators. They can create works, market them, and sell them. Small business owners can sell products such as food and drinks or offer services such as haircuts and styling. Traders can buy and sell various goods, such as cars or houses. Agents can work as recruiters or real estate agents and set their own hours and workload. Freelancers and contractors can sell their skills, such as graphic design, coding, or writing, on a project-by-project basis.
Some jobs that are considered less demanding include tour guides, who take people to see unique and exciting sites. Data entry is another option, as it can be quick and easy, and you may be able to finish a full day's work in just a few hours. Secretary work can also offer a lot of downtime, as it often involves managing your supervisor's schedule, answering emails and phone calls, and taking notes. Being a door attendant can also be a fun and calming job, as you spend most of your day greeting people, helping with directions, and assisting with luggage.
Other options for those who do not want to work include becoming a landlord, as it can be easy money as long as you manage tenant leases. Being an author is also an option, as self-publishing is now more accessible, providing a steady income and freedom. Video game testing can be a fun way to get paid for playing games, although these jobs may be hard to find. House-sitting is another easy option, as it often comes with minimal rules and responsibilities.
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Employment during the COVID-19 pandemic
The COVID-19 pandemic has had a significant impact on employment in Australia, causing large month-to-month changes and resulting in multiple trend breaks. The Australian Bureau of Statistics (ABS) has reported that the pandemic has led to both extensive job losses and gains. For example, in June 2025, around 381,000 people entered employment, while around 421,000 people left employment.
During the initial months of the pandemic in March 2020, two-thirds of businesses reported a reduction in turnover, and the underemployment rate hit a record high of 13.8%, with 1.8 million people working reduced or no hours for economic reasons. The Accommodation and Food Services industry was particularly hard hit, with a 35% drop in payroll jobs. The unemployment rate peaked at 7.5% in the June 2020 quarter—the highest in over 20 years.
By August 2020, there were signs of economic and employment recovery in all states except Victoria, which was dealing with a second COVID-19 wave and lockdown. However, the pandemic continued to cause fluctuations in employment numbers, and in June 2025, the employment-to-population ratio remained at 64.2%.
It is important to note that the official unemployment rate may not capture all individuals without work. To be considered officially unemployed, one must be actively looking for work and available to start immediately. In February 2021, there were an estimated 808,000 people without jobs who were actively looking and ready to start immediately. However, there were 2.2 million people who weren't employed and wanted to work, indicating a larger group of individuals seeking employment than reflected in the official unemployment rate.
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Frequently asked questions
As of June 2025, the total number of employed people in Australia was 14,637,800. However, the number of unemployed people is difficult to determine due to varying definitions of unemployment. According to one source, there were 2.2 million people who wanted a job, but only 808,000 were considered officially unemployed.
The unemployment rate is calculated based on the number of people who are actively looking for work and are available to start immediately. Those who are available to start work within a few weeks but not immediately are not considered unemployed.
Various factors can contribute to people not having jobs in Australia. Some of these include age discrimination, lack of nearby public transport, lack of suitable skills, and competition from other job seekers. Additionally, some people may not be included in the official unemployment rate if they are on welfare, students, or stay-at-home parents. or those who are unable to find employment and stop being counted as part of the workforce over time. The unemployment rate also does not include people who are not seeking work, which can impact the accuracy of the statistics and contribute to a potential wage/price spiral of inflation.
