New Labour Force Statistics Released by Australian Bureau of Statistics for January 2025

On February 20, 2025, the Australian Bureau of Statistics (ABS) released the latest Labour Force data for January 2025. The report indicated that employment growth was relatively strong, with a focus on full-time employment, which is a positive development. However, the growth in employment was not sufficient to keep up with population growth and the increasing participation rate, leading to a rise in the unemployment rate by 0.1 percentage point to 4.1 per cent.

Key Highlights from the January 2024 Report:

• Employment rose by 44,000 (0.3 per cent) in January 2024, with full-time employment increasing by 54,100 (0.5 per cent) and part-time employment decreasing by 10.1 thousand (-0.2 per cent).
• Unemployment rose by 23,400 to 627,500 persons, resulting in an official unemployment rate of 4.1 per cent.
• The participation rate increased by 0.2 points to 67.3 per cent.
• The underemployment rate remained stable at 6 per cent.
• The total labour underutilisation rate (unemployment plus underemployment) rose by 0.2 points to 10.1 per cent.

FAQs

What was the impact of the rising participation rate on unemployment in January 2025?

The rise in the participation rate in January 2025 led to more workers entering the labour force, increasing total unemployment. It is estimated that without the rise in participation, the unemployment rate would have been lower at 3.9 per cent.

How did teenage employment fare in January 2025?

In January 2025, teenage employment showed a modest improvement, with an increase in overall employment by 3.7 thousand. Full-time teenage employment rose by 9.3 thousand, while part-time employment decreased by 5.6 thousand.

Conclusion

The latest Labour Force statistics for January 2025 indicate a positive trend in employment growth, particularly in full-time positions. However, challenges remain as the unemployment rate rose due to the inability of job creation to match population and participation rate growth. The underemployment rate remained stable, but the overall labour underutilisation rate increased. Australia is still far from full employment, with over 1.5 million people facing unemployment or underemployment. Continued monitoring and targeted policies are necessary to address these issues and strengthen the labour market.

For more detailed insights and analysis, refer to the full report released by the Australian Bureau of Statistics.

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