Key Highlights

  • Australia’s seasonally adjusted Unemployment rate increased to 4.6% in August 2026.
  • Employment rose by 39,500 people, with part-time employment accounting for the monthly increase.
  • The participation rate increased by 0.2 percentage points to 67.1% in seasonally adjusted terms.
  • Hours worked increased by 14 million hours, or 0.7%, during August.

Australia added jobs in August, yet the unemployment rate still moved higher as more people entered the labour force. Employment increased during the month, but the rise was concentrated in part-time work, while the number of unemployed people also grew. The August labour force figures therefore show simultaneous growth in employment, participation and unemployment.

Employment Grows as Unemployment Also Rises

Seasonally adjusted employment increased by 39,500 people, or 0.3%, to 14.84 million in August 2026. At the same time, the unemployment rate rose to 4.6% as the number of unemployed people increased by around 28,000.

The increase in unemployment occurred alongside a larger labour force. A higher proportion of people who had previously been outside the labour force moved into unemployment compared with recent years. This contributed to the participation rate rising by 0.2 percentage points to 67.1%.

Part-Time Work Drives the Monthly Employment Gain

The composition of employment shifted during August. Part-time employment increased by 45,800 people to about 4.64 million, while full-time employment declined by 6,300 to about 10.19 million.

The employment-to-population ratio increased by 0.1 percentage points to 63.9% in seasonally adjusted terms. Over the year, employment increased 1.6%, indicating that the total number of employed people remained above its level a year earlier despite the higher unemployment rate.

Hours Worked Rebound

Hours worked increased by 14 million hours, or 0.7%, in August after declining by the same amount in July. Annual growth in employment and hours worked remained closely aligned, at 1.6% and 1.7% respectively.

The underemployment rate moved in the opposite direction to unemployment, falling by 0.1 percentage points to 6.2% in seasonally adjusted terms. This measure captures employed people who want and are available to work additional hours.

Trend Data Points to a Gradual Shift

The trend unemployment rate also stood at 4.6% in August. Trend employment increased by 0.2% to about 14.83 million people, while trend hours worked were unchanged. The trend underemployment rate remained at 6.3%, and the trend underutilisation rate held at 10.8%.

The trend participation rate was 67.0%, up 0.1 percentage points from July. The trend series smooths month-to-month movements and provides another view of the underlying direction of the labour market.

Methodology Changes Add Context to August Data

The August release completed the Labour Force Modernisation program, with all rotation groups migrated to new systems and questionnaires. The ABS noted that changes to the Supplementary Survey collection model could have a small unintended impact on the August seasonally adjusted estimates.

Sensitivity testing indicated that any effect on monthly movements was expected to be smaller than normal sampling variability. The data was assessed as fit for purpose, while trend estimates were recommended as the better measure of underlying labour-market behaviour.

What to Watch Next

The August figures leave employment, participation and unemployment all higher in seasonally adjusted terms. The next labour force releases will show whether the increase in unemployment persists and how full-time employment, participation, hours worked and underemployment develop.