Australia’s jobless rate edged up to 4.3% in February even as nearly 49,000 jobs were added, signalling a labour market that’s softening at the edges but remains historically tight
Australia’s unemployment rate ticked up in February even as the economy added nearly 49,000 jobs, with new figures pointing to a labour market that is softening at the edges but remains historically tight.
The latest labour force data from the Australian Bureau of Statistics (ABS) shows the seasonally adjusted jobless rate rose to 4.3% in February, up from 4.1% in January. The number of unemployed people increased by 35,000 to 659,100.
ABS head of labour statistics Sean Crick said the rise partly reflected weaker transitions from unemployment into work than is typical for this time of year.
“This month we saw fewer people who were unemployed and waiting to start a job in January move into employment in February, compared to recent Februarys,” Crick said.
“We also saw more people remaining unemployed this month compared to recent Februarys.”
Despite the uptick in unemployment, total employment increased by 48,900 people over the month to 14,748,700 in seasonally adjusted terms, and by 264,700 over the year.
The gains were driven entirely by part-time jobs. Part-time employment jumped by 79,400 to 4,631,800 people, while full-time employment fell by 30,500 to 10,117,000.
“This month we saw more people move into part-time employment, particularly those aged 65 and over,” Crick said. “Additionally, this month we saw that fewer people are leaving jobs to retire compared to a year ago.”
The shift towards part-time work was reflected in hours worked, which fell 0.2% in February to 2,007 million hours in seasonally adjusted terms, even as the number of people in work increased. In trend terms, however, monthly hours worked edged up 0.3% to 2,009 million hours and were 1.7% higher over the year.
The participation rate – which measures the share of people either in work or actively looking for it – rose 0.2 percentage points to 66.9% in February on a seasonally adjusted basis, matching its record-high range of recent years. In trend terms, participation held steady at 66.8%, with male participation at 70.7% and female participation at 63.0%.
Trend data suggest the underlying labour market remains relatively firm. The trend unemployment rate eased from a revised 4.3% in January to 4.2% in February, with the number of unemployed people dipping by 1,600 to 653,000.
“Trend employment grew by 0.2% while hours worked grew by 0.3% in February,” Crick said. “Annually, hours worked also grew faster than employment.”
In trend terms, total employment rose by 24,000 people in February to 14,721,400. Both full-time and part-time work increased, with full-time employment up 9,800 to 10,125,100 and part-time employment up 14,200 to 4,596,300. The part-time share of employment remained a little over 31%.
The employment-to-population ratio, a broader gauge of labour market strength, increased in trend terms to 64.0% in February, near record highs.
Measures of spare capacity were little changed. The trend underemployment rate held at 5.9%, while the broader underutilisation rate – which combines unemployment and underemployment – remained at 10.1%. Youth unemployment in trend terms was steady at 10.0%.
The ABS noted that labour force trend estimates over the pandemic period contain several breaks due to unusually large month-to-month movements, and urged caution when interpreting those historical trend series.
The February survey reference period ran from 1 to 14 February 2026. The ABS will collect March labour force data between 1 and 14 March.
Survey modernisation underway
Alongside the latest figures, the ABS confirmed it is pressing ahead with a major modernisation of how it collects Labour Force Survey data, with the transition to a new system commencing in April.
“The transition to our new system starts in April and when complete, it will give survey participants a modern, easy and secure way to complete the Labour Force Survey,” Crick said.
“We are managing this transition with care to ensure our data remains accurate, trustworthy and secure.”
The bureau said the changes are designed to maintain high-quality labour market statistics, support strong response rates and improve the experience for survey participants.
