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The ABS Labour Force report for January 2026 presents a mixed picture of the Australian jobs market. While headline unemployment held steady and full-time employment rose by 50,000, a simultaneous loss of 33,000 part-time positions tempered overall employment growth to just 18,000 for the month.
Key Details:
Unemployment rate steady at 4.1% (seasonally adjusted)
Full-time employment up 50,000; part-time employment down 33,000
Net employment growth of 18,000 for January
Participation rate fell to 66.7% — down 0.6 percentage points from January 2025’s record high
Underemployment rate rose 0.2 points to 5.9%
Underutilisation rate climbed 0.2 points to 10.0%
Youth underemployment jumped 1.0 percentage point to 14.8%
Total hours worked rose 0.6% — outpacing employment growth
Trend Indicators:
Trend unemployment fell from 4.2% in December to 4.1% in January
Unemployed persons decreased for the fourth consecutive month
Trend hours worked grew faster than employment on an annual basis
ABS Commentary: Sean Crick, ABS Head of Labour Statistics, noted the youth underemployment rise “largely reversed the fall recorded last month,” flagging the reversal as a key concern within an otherwise stable headline result. Crick attributed stronger hours growth to fewer workers taking seasonal leave compared with typical Januarys.
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