Unemployment Rate Rises To 4.3%: Australia

The seasonally adjusted unemployment rate rose to 4.3 per cent in June, according to data released today by the Australian Bureau of Statistics (ABS).

Sean Crick, ABS head of labour statistics, said: 'This month we saw the unemployment rate rise 0.2 percentage points, driven by a 34,000 increase in the number of unemployed people'.

Employment rose by 2,000 people this month, following a fall of 1,000 in May, and is up 2.0 per cent compared to June 2024. Part time employment grew by 40,000 people, offset by a 38,000 person fall in full time employment.

The employment-to-population ratio remained at 64.2 per cent, and the participation rate rose to 67.1 per cent.

Hours worked fell 0.9 per cent in June, following a rise of 1.4 per cent in May.

'This month we saw a decrease in full time hours worked, down 1.3 per cent, associated with a 0.4 per cent fall in full time employees,' Mr Crick said.

Underemployment and underutilisation

The underemployment rate rose by 0.1 percentage points to 6.0 per cent in June 2025. This was 0.4 percentage points lower than June 2024, and 2.7 percentage points lower than March 2020.

The underutilisation rate, which combines the unemployment and underemployment rates, rose by 0.3 percentage points to 10.3 per cent. This was 0.1 percentage points lower than June 2024, and 3.6 percentage points lower than March 2020.

Underlying trend data

'The trend unemployment rate has risen to 4.2 per cent, after remaining at 4.1 per cent over the previous three months,' Mr Crick said.

Employment grew by around 23,000 people (+0.2 per cent) in June, and 2.1 per cent over the last 12 months.

Monthly hours worked rose by 0.1 per cent, which has consistently been smaller than monthly employment growth since the start of 2025.

'In trend terms, the employment-to-population ratio remained at 64.2 per cent in June, while the participation rate stayed at 67.0 per cent. Both measures have remained largely unchanged since the start of 2025,' Mr Crick said.

The underemployment rate remained at 5.9 per cent and the underutilisation rate remained at 10.1 per cent.

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