Australia added jobs in August
Australia's labour market delivered an unusual combination in August: employment rose, but so did unemployment.
Seasonally adjusted employment increased by around 39,000 people, according to figures released by the Australian Bureau of Statistics on September 24.
Despite the increase, the unemployment rate climbed from 4.4% to 4.6%. The number of unemployed people increased by approximately 28,000.
Australia labour market · August 2026
More people entered the labour market
The explanation is largely about participation. According to the ABS, a higher proportion of people who had previously been outside the labour force moved into unemployment during August.
As a result, the labour-force participation rate increased by 0.2 percentage points to 67.1%. In simple terms, more Australians were either working or actively looking for work.
The type of employment growth also matters. Part-time employment increased by around 46,000, while full-time employment fell by approximately 6,000.
Meanwhile, hours worked increased by 0.7%, and employment was 1.6% higher than a year earlier.
What this means for job seekers
Australia is still adding jobs, but August's figures point to a more competitive labour market. Employment growth was concentrated in part-time work while the pool of people actively seeking employment increased.
The ABS also reported that underemployment fell slightly to 6.2%, suggesting that the picture is not uniformly negative. But the rise in unemployment means candidates may face greater competition than they did earlier in the year.
The agency noted that methodological changes could have a small effect on the August seasonally adjusted figures and continues to recommend trend data when assessing the underlying direction of the labour market.
Source: Australian Bureau of Statistics, Labour Force, Australia, August 2026, published September 24, 2026. View the official ABS release.
Written by Oliver GodoltSenior Newswriter at Cityjobs.info
