Unemployment rose in June, ABS says

The seasonally adjusted unemployment rate increased last month, according to new data from the Australian Bureau of Statistics (ABS).

According to the ABS, the unemployment rate has risen to 4.3 per cent.

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

The employment-to-population ratio remained at 64.2 per cent, it said, and the participation rate rose to 67.1 per cent. Elsewhere, hours worked fell 0.9 per cent in June, following a rise of 1.4 per cent in May.

ABS head of labour statistics Sean Crick 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.”

“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.”

The underemployment rate has also increased, by 0.1 percentage points to 6 per cent in June 2025. This was 0.4 percentage points lower than in June of last year, the ABS noted, and 2.7 percentage points lower than in March 2020.

Reflecting on the underlying trend data, Crick said: “The trend unemployment rate has risen to 4.2 per cent, after remaining at 4.1 per cent over the previous three months.”

“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,” he said.

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

Responding to the ABS data, Employment Hero chief executive Ben Thompson said: “This month’s labour data isn’t glaringly negative, but it is troublesome.”

“Unemployment rising 0.2 per cent while hiring barely nudges up tells us businesses are hesitant to grow their teams as cost pressures and weak demand continue to bite.”

“Our Employment Hero June Jobs Report shows hiring is flat month-on-month, hours are up just 0.1 per cent (MoM), and wages are seeing the most growth at 0.3 per cent (MoM).”

“It’s becoming harder for employers to justify new roles when every hire costs more, especially following the 3.5 per cent increase in minimum wage and the 0.5 per cent lift to super. Not to mention, business turnover just fell for the first time since last October. Many are choosing to stretch existing teams or reduce headcount.”

What stands out, Thompson continued, “is the drop in full-time roles and rise in part-time”.

“Employment Hero data supports this trend, with casuals and teens seeing the biggest gains in June as businesses look to manage costs and stay flexible. It’s clear we’re in a market that favours flexibility over long-term commitments,” he said.