Australia's unemployment holds at 4.1% in January 2026

Sean Crick, head of labour statistics at ABS, said, employment increased by 18,000 during the month. Growth was driven by a rise of 50,000 in full-time jobs, partially offset by a decline of 33,000 in part-time roles.

The participation rate eased to 66.7 per cent, down 0.6 percentage points from the record level in January 2025, indicating slightly lower labour force engagement. Meanwhile, labour slack edged higher, with the underemployment rate rising 0.2 percentage points to 5.9 per cent and the underutilisation rate also increasing to 10 per cent, ABS said in a press release.

Youth underemployment climbed notably, advancing 1 percentage point to 14.8 per cent and reversing the improvement seen in the previous month.

Total hours worked increased by 0.6 per cent in January, supported by fewer workers reporting reduced hours due to leave compared with typical seasonal patterns. Full-time hours rose 0.7 per cent, while part-time hours grew modestly by 0.1 per cent. On average, part-time employees worked more hours per person, up 0.8 per cent, although the overall number of part-time workers declined.

On a trend basis, the unemployment rate slipped from 4.2 per cent in December to 4.1 per cent in January, marking a fourth consecutive monthly decline in unemployment. Trend employment and hours worked both expanded by 0.2 per cent, with annual growth in hours worked continuing to outpace employment gains.

Fibre2Fashion News Desk (SG)