Roy Morgan estimates 3.456 million Australians were either unemployed or under‑employed in December 2025, equal to 21.5% of the workforce and the 13th straight month above 3 million.
“‘Real’” unemployment rose by 41,000 to 1,669,000 (10.4% of the workforce, up 0.2 percentage points), while under‑employment increased 78,000 to 1,787,000 (11.1%, up 0.4 points).
The total workforce (employed plus unemployed) was 16,097,000, up 130,000 on November and equal to 69.2% of Australians aged 14+. Overall employment rose by 89,000 to 14,428,000 (62% of 14+).
Separate Commonwealth Bank data suggest the labour market is still “holding up strongly” despite slower hiring, with wages steady and headline unemployment low, even as markets increasingly price in the risk of Reserve Bank rate hikes in 2026.
Employment growth is being driven entirely by part‑time roles. Part‑time employment jumped 143,000 to a record 5,279,000 (36.6% of all employed), while full‑time employment fell 54,000 to 9,149,000 (63.4%).
Compared with a year earlier, total employment is up 152,000, but part‑time jobs have risen 326,000 and full‑time positions have dropped 174,000. More people are looking for full‑time work (up 68,000 to 667,000), while those seeking part‑time work fell 27,000 to 1,002,000.
Roy Morgan CEO Michele Levine (pictured) said labour under‑utilisation remains elevated.
“The latest Roy Morgan employment estimates for December show overall Australian unemployment and under-employment increasing 119,000 to 3,456,000 (21.5% of the workforce, up 0.6%). Concerningly, overall unemployment and under-employment have been above 3 million over a year,” Levine said.
Levine warned that full‑time jobs have gone backwards over the year.
“A look at the employment market over the last year shows a marginal increase to employment, up 152,000 to 14,428,000," she said. "However, only part-time employment is showing sustained increases, up by 326,000 to 5,279,000, while full-time employment dropped 174,000 to 9,149,000 from a year ago. Full-time employment has been consistently lower during 2025 than a year earlier,” she said.
“Both unemployment and under-employment have increased markedly from a year ago with unemployment up 127,000 to 1,669,000 (10.4% of the workforce, up 0.7%) and under-employment is up 111,000 to 1,787,000 (11.1% of the workforce, up 0.5%). This means overall unemployment and under-employment has increased significantly by 238,000 to 3,456,000 (21.5%, up 1.2%).
Levine said the sluggish labour market, with effectively no net full-time jobs added over the past year, underlines how low productivity is "stifling growth and leading to labour market stagnation.”
She noted inflation has also picked up.
“The latest ABS Inflation estimates for November 2025 showed official CPI at 3.4%, almost double the level in the 12 months to June 2025 (1.9%), but down slightly from the October 2025 high of 3.8%,” Levine said.
Levine argued that high public spending is keeping inflation elevated and limiting the Reserve Bank’s room to cut rates.
“The biggest driver of inflation in the Australian economy is public spending – from federal and state governments – which crowds out private investment and reduces economic productivity," she said.
She contrasted this with the US Federal Reserve and Reserve Bank of New Zealand, which have both cut rates multiple times since 2024, and warned that “as long as the Albanese government continues to increase public spending the economy will remain sluggish and over 3 million Australians will continue to be unemployed or under-employed.”
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