Unemployment rate rises to 4.0% in December amid record-high participation
The seasonally adjusted unemployment rate increased by 0.1 percentage point to 4.0% in December 2024, according to data released by the Australian Bureau of Statistics (ABS) today. Employment rose by 56,000 people, while the number of unemployed increased by 10,000, reflecting a record-high participation rate of 67.1%, up 0.2 percentage points from November.
Bjorn Jarvis, ABS head of labour statistics, highlighted the robust growth in the labour force. “The employment-to-population ratio rose to a record 64.5%, 2.3 percentage points higher than before the COVID-19 pandemic. This demonstrates sustained strength in workforce engagement.”
Monthly hours worked also increased by 0.5%, outpacing the 2024 average of 0.3%, and annual growth in hours worked aligned with the 3.2% rise in employment.
Underemployment and Youth Trends
The underemployment rate fell to 6.0%, 0.6 percentage points lower than December 2023 and 2.7 percentage points below March 2020. Youth underemployment remained higher at 14.1% but has significantly improved from 19.1% in March 2020.
“While youth underemployment rates for men have seen notable improvements, women’s rates have remained relatively stable,” Mr Jarvis noted.
The underutilisation rate, combining unemployment and underemployment, remained at 10.0%, matching levels last seen before the Global Financial Crisis in 2008.
Trend Data and Outlook
In trend terms, the unemployment rate held steady at 4.0%, with employment growing at the 20-year pre-pandemic average of 0.2%. The participation rate and employment-to-population ratio reached historical highs, signalling continued workforce resilience.
The ABS will release additional regional labour market insights in the December 2024 issue of Labour Force, Australia, Detailed, on Thursday 23 January 2025.
Source: Australian Bureau of Statistics (ABS).
