Australia unemployment steady at 4.1% in Jan as jobs grow

ABS head of labour statistics Sean Crick said employment increased by 18,000 during the month. Full-time employment rose by 50,000, partially offset by a decline of 33,000 in part-time roles, indicating a shift towards more stable job structures.

The participation rate stood at 66.7 per cent, down 0.6 percentage points from the record high recorded in January 2025, suggesting slightly lower workforce engagement, ABS said in a press release.

Australia’s unemployment rate held steady at 4.1 per cent in January as employment rose by 18,000, driven by gains in full-time jobs despite fewer part-time roles.
Participation eased to 66.7 per cent, while underemployment and youth underemployment increased.
Hours worked grew 0.6 per cent, and trend unemployment declined to 4.1 per cent, signalling gradual labour market improvement.

Labour market slack indicators showed modest increases. The underemployment rate edged up 0.2 percentage points to 5.9 per cent, while the underutilisation rate rose to 10 per cent. Youth underemployment climbed notably by 1 percentage point to 14.8 per cent, largely reversing the previous month’s improvement.

Total hours worked increased 0.6 per cent in January, supported by fewer workers reporting reduced hours due to seasonal leave patterns. Full-time hours worked expanded 0.7 per cent, while part-time hours rose 0.1 per cent.

Average hours per part-time worker increased 0.8 per cent, although overall part-time hours growth remained limited due to a 0.7 per cent decline in part-time employment.

Trend measures indicated gradual labour market strengthening. The trend unemployment rate fell from 4.2 per cent in December to 4.1 per cent in January, marking the fourth consecutive monthly decline in the number of unemployed persons. Trend employment and hours worked both recorded 0.2 per cent growth during the month, with annual hours worked rising faster than employment.

Fibre2Fashion News Desk (SG)