Lyla Lindsey
Australia's unemployment rate has fluctuated in recent years, with the COVID-19 pandemic causing significant month-to-month changes. In June 2023, the unemployment rate was 3.5%, lower than the pre-pandemic rate of around 5%. During 2020, the rate spiked to 7.6% amid the country's second coronavirus wave. As of June 2025, the unemployment rate increased to 4.2%, with a total of 1.2 million people aged 18-75 without paid employment. Of these, 1.1 million were available to start work within four weeks, while 2.1 million people without jobs did not want a job or were retired or permanently unable to work. The employment-to-population ratio in June 2025 remained at 64.2%
| Characteristics | Values |
|---|---|
| Date | June 2025 |
| Unemployment rate | 4.2% |
| Participation rate | 67.0% |
| Number employed | 14,637,800 |
| Employment-to-population ratio | 64.2% |
| Underemployment rate | 5.9% |
| Monthly hours worked | 1,976 million |
| People without a job that wanted a job | 1.2 million |
| People with a job that didn't want one | 2.1 million |
| People retired or unable to work | 1.9 million |
| Full-time employment | 10,086,300 |
| Part-time employment | 4,551,500 |
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What You'll Learn
Unemployment rate in June 2023
Australia's unemployment rate in June 2023 was 3.5%, lower than the pre-COVID-19 rate of around 5%. During the pandemic in 2020, the unemployment rate in Australia spiked to 7.6%.
In June 2023, the number of employed people increased by 39,000 (0.3%) to 14,045,800. This was a net change of around 446,000 people entering employment and 517,000 people leaving employment. Full-time employment increased by 35,400 to 9,864,500, and part-time employment increased by 3,600 to 4,181,300. The employment-to-population ratio remained at 64.5%.
The monthly hours worked in all jobs increased by 10.3 million hours (0.5%) to 1,956 million hours. This was a smaller increase than the previous month, which saw a rise of 1.4%.
Unemployment rates varied across Australia, with South Australia having the highest rate and New South Wales, the country's most populous state, reporting the lowest rate.
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Unemployment by state
As of June 2025, the total number of employed people in Australia was 14,637,800. This figure includes both full-time and part-time workers. However, unemployment rates vary across the country, with certain regions and territories experiencing higher unemployment than others.
For instance, in Sydney, the unemployment rate in the eastern suburbs is estimated to be lower (2.8%) compared to Parramatta (5.5%) and south-west Sydney (5.6%). These disparities highlight the uneven nature of employment across Australia, where different labour markets and regions can exhibit varying employment outcomes.
Remote and regional areas, particularly in northern Australia, tend to experience persistently high unemployment due to limited employment options, a lack of support services, and entrenched disadvantage. This disparity in unemployment rates across the country underscores the need for a more inclusive approach to achieving full employment.
The Australian government has recognized this issue, with Treasurer Jim Chalmers emphasizing the importance of monitoring metrics to ensure progress towards inclusive full employment. The government has also allocated additional funding to improve the frequency and detail of information on the factors preventing some groups from entering the workforce.
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Unemployment and underemployment
The employment-to-population ratio, a measure of employment relative to the population size, remained at 64.2% in June 2025. This indicates that a significant portion of the population remains unaffected by unemployment. However, underemployment is also a concern, with 818,900 part-time workers preferring to work additional hours, and a national underemployment rate of 5.9% as of June 2025.
Regional disparities exist within Australia regarding unemployment and underemployment. In June 2023, South Australia had the highest unemployment rate, while New South Wales reported the lowest. Tasmania, meanwhile, experienced the highest underemployment rate. These variations may be attributed to differences in industry specialisation, economic conditions, and labour market dynamics across the country.
Barriers to obtaining employment or increasing working hours have been identified, with Australians citing excessive competition from other applicants and a lack of necessary training, qualifications, or experience as the leading challenges. These factors contribute to the complex landscape of unemployment and underemployment in Australia, influencing individuals' ability to secure desired work arrangements.
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Employment-to-population ratio
The employment-to-population ratio is a measure of employment relative to the size of the population. In June 2025, the employment-to-population ratio in Australia remained at 64.2%.
In 2021, the size of Australia's labour force was 12,695,826, of which 3,962,544 were employed part-time and 7,095,093 were full-time workers. Overall, 94.9% of the labour force was employed, and 5.1% were unemployed. This is a slight improvement from 2016 to 2021, where the number of people employed in Australia increased by 1,365,559, and the number of unemployed decreased by 141,027.
In June 2025, the unemployment rate in Australia increased to 4.2%, while the participation rate remained at 67.0%. Employment increased to 14,637,800, with full-time employment increasing by 15,800 to 10,086,300 people, and part-time employment increasing by 7,000 to 4,551,500 people.
The employment-to-population ratio is an important indicator of the socio-economic status of a country. It provides insight into the strength of the local economy and the social characteristics of the population. Factors such as age structure, the economic base, employment opportunities, and the education and skill base of the population influence the employment-to-population ratio.
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Labour Force Survey
The Australian Bureau of Statistics (ABS) conducts a monthly Labour Force Survey to estimate the country's employment, unemployment, underemployment, participation, and hours worked. The survey was previously conducted quarterly before 1978.
The survey provides headline estimates, which are then followed by a detailed report. The headline estimates include data on employment, unemployment, underemployment, participation, and hours worked. The detailed report includes more specific data, such as industry, occupation, job duration, and retrenchment. This detailed data is only available for February, May, August, and November.
The June 2025 Labour Force Survey was conducted between 1st and 14th June and collected responses between 8th and 28th June. The survey results showed that employment increased by 0.2% (22,800 people), with full-time employment increasing by 15,800 and part-time employment by 7,000. The employment-to-population ratio remained at 64.2%.
The ABS also releases regional Labour Force Survey estimates, including direct survey estimates and modelled estimates. The modelled estimates are considered higher quality and are recommended for reporting on employment and unemployment rates for regional labour markets. These estimates are calculated using the Rao-Yu time-series model, which utilises administrative data such as de-identified Single-Touch Payroll data and Youth Allowance and JobSeeker recipients data.
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Frequently asked questions
As of June 2025, the unemployment rate in Australia is 4.2%.
As of March 2025, 1.2 million people aged 18-75 were unemployed and wanted a job.
As of June 2025, the employment-to-population ratio in Australia is 64.2%.
As of June 2025, the underemployment rate in Australia is 5.9%.
During the COVID-19 pandemic in 2020, the unemployment rate in Australia spiked to 7.6%. In June 2023, the unemployment rate was 3.5%, lower than the pre-COVID-19 rate of around 5%.
