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Australian Unemployment Rises to 10.1% in January Amid Growing Workforce

Australian Unemployment Rises to 10.1% in January Amid Growing Workforce
By Robert Heyward
In January 2025, Australia’s real unemployment increased by 78,000 people to 1,620,000, reaching 10.1% of the workforce (up 0.4%). The rise in unemployment was driven by more people entering the workforce, with many struggling to secure jobs.
The total Australian workforce reached a record 16,115,000, an increase of 297,000 from December. Both employment and unemployment grew, with employment rising by 219,000 to a new high of 14,495,000, while unemployment also climbed.
Employment Growth Driven by Full-Time Jobs
January saw a surge in full-time employment, which increased by 306,000 to 9,629,000—a new record. In contrast, part-time employment dropped for the second consecutive month, falling by 87,000 to 4,866,000.
Unemployment Rises with Workforce Expansion
- Unemployed Australians: 1,620,000 (10.1% of workforce, up 78,000 from December)
- Looking for part-time work: 837,000 (up 36,000)
- Looking for full-time work: 783,000 (up 42,000)
Unemployment & Underemployment Hit Highest Levels Since 2021
Total unemployment and under-employment rose to 21.4% (up 1.1%), the highest rate since January 2021.
- Under-employed Australians (working part-time but seeking more work): 1.81 million (11.3% of workforce, up 137,000)
- Total Australians unemployed or under-employed: 3.43 million (21.4% of workforce)
Comparison to Two Years Ago
The workforce has grown 1,090,000 since January 2023, with employment rising 1,077,000 in that time. However, the increase in workforce participation is outpacing job availability, driving up unemployment rates.
The January unemployment estimates were obtained from Roy Morgan’s national survey of Australians aged 14+, classifying individuals as unemployed if they are actively looking for work.
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