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Unemployment in Australia in December 2025 fell to its lowest in seven months as more young people were being employed.
The seasonally adjusted unemployment rate declined to 4.1%, the lowest since May 2025, Thursday data from the Australian Bureau of Statistics showed.
“This month, we saw more 15 to 24 year olds moving into employment, contributing to the rise in overall employment and the fall in the unemployment rate,” ABS head of labor statistics Sean Crick said.
The number of employed people rose by 65,000, with 49,000 male staff being added to the job market. The growth in female employment was lower, although it also rose by 17,000 people.
The current employment figures went beyond the market expectation of a 27,000 growth, as well as the Commonwealth Bank of Australia’s prediction of a 35,000 increase and Westpac’s forecast of a 40,000 rise.
The holidays, especially Black Friday through to Boxing Day, could have been a factor to the need for more manpower, but Westpac economist Ryan Wells believes this was not a major driver to higher employment as the labor force results during summer has been volatile since the pandemic.
“Shifting seasonality in spending patterns during the retail high season could also be a factor, but this would typically boost part-time employment more than full-time employment, unlike the case this month,” Wells said.
Despite the hike in employment numbers, the participation rate slightly rose 66.7%, according to Crick.
CBA economist Harry Ottley noted that the labor market may have found a sturdier ground after the pandemic.
“Overall, the report points to a labor market that may be beginning to strengthen after an extended period of gradual softening,” Ottley said. “As we have noted previously, job vacancy levels remain elevated, particularly in certain sectors and locations, indicating ongoing labor shortages across the economy.”