Australia’s job market isn’t standing still, with some intriguing shifts happening in the numbers just released by the Australian Bureau of Statistics (ABS). In September, the unemployment rate held firm at 4.1%, a familiar figure we’ve seen for months now. But don’t be fooled by the steady surface—the workforce is far from stagnant.
Bjorn Jarvis, head of labour statistics at the ABS, noted a bump in employment with 64,000 more people joining the workforce, and a small drop in the number of unemployed people by 9,000. So, even though the unemployment rate didn’t change, the number of employed people has grown considerably. As Jarvis pointed out, “Employment has risen by 3.1 per cent in the past year, growing faster than the civilian population growth of 2.5 per cent.” Essentially, jobs are multiplying faster than the country’s population, showing that more people are successfully finding work.
Now, what does that mean for the bigger picture? The employment-to-population ratio—a measure that tells us how many people are working compared to the overall population—hit a new high of 64.4%. More Australians are participating in the workforce than ever before, a trend that’s been developing as job vacancies remain elevated post-pandemic. For those looking for work or already employed, it’s good news.
The participation rate, which tracks how many people are either working or actively looking for work, also nudged up to a record 67.2%. That’s a sign of a healthy job market, with more individuals willing and able to join the workforce. As Jarvis pointed out, this rise shows that “there are still large numbers of people entering the labour force and finding work in a range of industries.”
But what about those who still find themselves without a job? While there was a slight drop in the number of unemployed people in September, the year-on-year trend shows an increase of 90,000 more people unemployed since the same time last year. Nevertheless, there are 93,000 fewer people without a job compared to the pre-COVID period when the unemployment rate hovered at 5.2%. It’s a long game, but overall, Australia is in better shape now than it was before the pandemic hit.
Looking at how many hours we’re putting in, the stats tell an interesting story. The total number of hours worked by Australians climbed by 0.3%, closely following the rise in employment. But digging a little deeper into the gender divide, things get a bit more complex. Men clocked in more hours, with a 0.7% increase in the number of hours worked, while women saw a slight drop, down by 0.3%. Employment itself grew at different rates too—0.6% for men and only 0.3% for women.
This disparity raises some eyebrows. What’s happening here? Are men being favoured in certain industries, or is there a deeper trend where women are more likely to hold part-time roles or take on caregiving responsibilities? The data doesn’t answer these questions directly, but it’s clear that the workload isn’t being distributed equally across the genders.
Another key measure to consider is underemployment, which reflects how many people want more hours than they’re getting. This figure dipped slightly to 6.3%, still lower than it was before the pandemic in March 2020, when it sat at 8.7%. The underutilisation rate, a combination of both unemployment and underemployment, also fell to 10.4%, well below the pre-pandemic level of 13.9%. It shows a continued tightening in the labour market, with fewer people unable to work the hours they need.
The trend data, which smooths out the usual monthly fluctuations, points to some consistency in the labour market’s performance. The unemployment rate held steady at 4.1% for the fourth month in a row, with employment growing by around 44,000 people. Hours worked also ticked up by 0.2%, though not as quickly as employment itself.
It’s worth noting that while unemployment and underemployment rates remain low compared to pre-pandemic times, the participation rate continues to push into record territory. This signals a labour market that’s absorbing more people into jobs, even as Australia’s population grows. Jarvis mentioned that the labour market is still “relatively tight,” meaning that businesses continue to compete for workers, despite the rise in the number of unemployed people over the past year.
Looking ahead, more detailed data on the regional labour market will be released later in October, and it’ll be interesting to see how these broader trends play out across different states and industries. For now, though, Australia’s job market appears to be in good health, with plenty of opportunities for those who are ready to join or rejoin the workforce.
For our readers, many of whom are in the thick of their careers or just starting out, these numbers should provoke some thought. What do these trends mean for your own job prospects? How will the shifts in hours worked affect industries where men seem to be clocking more time? And what might happen as more people continue to enter the workforce?
It’s clear that the labour market isn’t slowing down, but it’s equally clear that there are underlying differences in how these changes are playing out for different groups. For those thinking of switching jobs, re-entering the workforce, or navigating the challenges of underemployment, the current state of play offers both opportunities and challenges.
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