Australia’s Unemployment Rate Drops to 4.1 in December 2025, Says Statistics Bureau

Data from the Australia Statistics Bureau (ABS) shows that Australia’s unemployment rate went down from 4.3% in November to 4.1% in December 2025.

This number is better than what many experts forecasted and is expected to affect the interest rate, which will be discussed at the next Reserve Bank of Australia (RBA) meeting on February 3.

Australia’s Unemployment Rate Goes Down

According to ABC News, the number of employed people went by 65,000 last month. 55,000 of these are full-time employees, while the remaining 10,000 have part-time employment.

In addition, the participation rate likewise rose to 66.7%. Male employment rose by 49,000 people. On the other hand, female employment likewise increased by 17,000.

ABS Head of Labour Statistics Sean Crick attributes these numbers to the increase in younger people entering the workforce.

“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,” said Crick.

As for underemployment, which happens when someone is not employed in a job that matches his or her skill level and education, ABS data shows that decreased to 5.7%.

Lowest in Seven Months

According to Trading Economics, the unemployment rate recorded for December 2025 is the lowest recorded in seven months.

Based on the numbers the 65,000 increase in employed people means that the number is now at 14.68 million, which is also a record high.

While participation rate did increase, it is slightly below the estimates, which pegged it at 66.8%.