Analysis of the Latest Labour Force Data for Australia – February 2025
On March 20, 2025, the Australian Bureau of Statistics released the latest Labour Force data for February 2025. The report highlights a concerning trend in the Australian labour market with a contraction in overall employment growth, a decrease in the participation rate, and a decline in the employment-population ratio. Despite the official unemployment rate holding steady at 4.1 per cent, adjustments for changing participation rates suggest an underlying rate of around 4.7 per cent. The report also reveals that there are still 1.5 million people in the working-age population who are either unemployed or underemployed, indicating a lack of full employment in the country.
Key Findings from the February 2025 Report:
- Employment fell by 52,800 (-0.4 per cent) in February, with full-time employment declining by 35.7 thousand and part-time employment falling by 17 thousand.
- Unemployment decreased by 11,200 to 612,600 persons.
- The participation rate dropped by 0.4 points to 66.8 per cent.
- The underemployment rate also decreased by 0.1 point to 5.9 per cent.
- Overall labour underutilisation rate (unemployment plus underemployment) fell by 0.2 points to 9.9 per cent.
FAQ
What is the current unemployment rate in Australia?
The official unemployment rate in Australia for February 2025 stood at 4.1 per cent.
How many people are considered underemployed in the labour market?
As of February 2025, there were 887.3 thousand underemployed workers in Australia.
What was the impact of the declining participation rate on unemployment in February 2025?
The decline in the participation rate resulted in 97.5 thousand fewer workers in the labour force, leading to an increase in hidden unemployment.
Conclusion
The latest Labour Force data for February 2025 reflects a deteriorating situation in the Australian labour market. Despite the official unemployment rate remaining stable, underlying factors such as declining participation rates indicate a higher level of unemployment than reported. The presence of a significant number of underemployed individuals highlights the ongoing challenges in achieving full employment in the country.