Australia’s labour market remained resilient in April 2025, with the latest data from the Australian Bureau of Statistics (ABS) showing steady employment growth and participation, despite a slight uptick in underemployment.
Headline Figures Show Stability
In trend terms, the unemployment rate held steady at 4.1%, unchanged from March. The employment level rose by 26,300 to reach 14,622,100 people, marking a 0.2% monthly increase and a 2.5% annual gain. Meanwhile, the participation rate remained at 67.0%, reflecting continued engagement from the working-age population.
The employment-to-population ratio, a key indicator of the proportion of Australians in work relative to the total population, also remained unchanged at 64.3%, showing consistency in the labour market.
Seasonally Adjusted Unemployment Rate was steady at 4.1 % in April [Australian Bureau of Statistics]
Seasonally Adjusted Data Paints a More Active Picture
Seasonally adjusted figures reveal slightly stronger labour market activity. Employment jumped by 89,000 people (0.6%) in April to 14,642,700, while the participation rate rose to 67.1%—up 0.3 percentage points from March.
The employment-to-population ratio increased to 64.4%, supporting the view that more Australians are finding work. Notably, full-time employment grew by 59,500 to over 10.07 million people, while part-time roles expanded by 29,500 to approximately 4.57 million.
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Underemployment Rises Despite Employment Growth
Despite these positive employment indicators, underemployment ticked up to 6.0% in both trend and seasonally adjusted terms—rising by 0.1 percentage points seasonally adjusted and 0.1 points in trend data. This suggests that although more Australians are working, a growing number feel they are not getting enough hours.
The underutilisation rate, which combines unemployment and underemployment, remained at 10.0% in trend terms, highlighting an ongoing slack in the labour market.
Monthly Hours Worked Show Mixed Trends
Hours worked—often a key signal of the intensity of labour market activity—declined slightly in trend terms, dropping by 2 million hours to 1,967 million. However, seasonally adjusted data shows a minor increase of 1 million hours, reaching 1,964 million, suggesting some rebound in labour input.
The decline in trend hours worked may reflect a moderation in workloads following recent economic activity, though the seasonally adjusted uptick points to possible variability due to holiday periods, industry-specific fluctuations, or temporary shifts.
Youth Unemployment and Gender Participation
Youth unemployment remains a key area of concern. In April 2025, the youth unemployment rate held steady at 8.9%, a figure still significantly above the national average and indicative of the challenges young Australians face entering the workforce.
Participation by gender remained stable overall. In trend terms, men’s participation held at 71.0%, while women’s participation slightly increased to 63.2%. These figures continue to reflect a narrowing gender gap in workforce engagement, though disparities remain in job type and hours worked.
Employment Composition: A Balance of Full-Time and Part-Time Roles
April’s trend data shows full-time employment increased by 11,700 people, reaching 10,063,700, while part-time employment rose by 14,600 to 4,558,300. Part-time jobs made up 31.2% of total employment, highlighting the enduring importance of flexible work arrangements in Australia’s labour market.
This balance of employment types indicates that while full-time positions continue to grow, part-time work remains a vital feature, offering adaptability for workers managing study, family responsibilities, or transitioning careers.
Long-Term Perspective and Cautions
Compared to April 2024, employment has grown by over 358,000 people in trend terms and nearly 390,000 people seasonally adjusted—an encouraging sign of long-term labour market strength.
However, the ABS cautions against over-interpreting month-to-month variations due to historical disruptions, particularly those caused by the COVID-19 pandemic. Multiple trend breaks have occurred during and after the pandemic period, potentially impacting the stability of comparisons.
Conclusion: A Strong Yet Cautious Labour Market Outlook
The Australian labour market in April 2025 continues to demonstrate strength, with rising employment and high participation levels. However, the increase in underemployment and stable unemployment rate suggest that while more people are finding jobs, not all are securing the hours or conditions they desire.
As Australia navigates economic transitions—from technological change to demographic shifts—the labour market remains a critical area to watch. Policymakers and businesses alike will need to respond with strategies that support not just job creation, but also quality and sustainable employment opportunities for all Australians.