Australia’s unemployment rate fell to 8.1% in September after employment jumped to a record high above 13.7 million

Unemployment in September fell by 161,000 to 1.2 million Australians (8.1% of the labor force), although underemployment rose by 233,000 to 1.56 million (10.5% of the labor force). Total unemployment and underemployment rose by 72,000 to 2.76 million (18.6% of the labor force).

• The labor force grew by 57,000 in September due to rising employment:

The labor force in September was at a record high of 14,907,000 (up 57,000 from August) – made up of a new record 13,705,000 employed Australians (up 218,000) and 1,202,000 unemployed Australians looking for work (down 161 000).

• Employment growth in September due to increases in full-time and part-time employment:

Employment in Australia increased by 218,000 to a new record of 13,705,000 in September. The increase was driven by a rise in full-time employment of 197,000 to 8,881,000 and an increase in part-time employment of 21,000 to a new record of 4,824,000.

1,202,000 Australians were unemployed (8.1% of the workforce) in September, down 161,000 from August with fewer people looking for full-time work, down 57,000 to 535,000, and also fewer people looking for part-time work, down 104,000 to 667,000.

In addition to the unemployed, 1.56 million Australians (10.5% of the labor force) were underemployed – working part-time but looking for more work, up 233,000 from August.

A total of 2.76 million Australians (18.6% of the labor force) were either unemployed or underemployed in September, up 72,000 from August.

Compared to early March 2020, before the nationwide lockdown, there were more than 600,000 more Australians either unemployed or underemployed in September 2022 (+3% points), although total employment (13,487,000) is over 830,000 higher than pre-COVID-19 (12,872,000).

This difference, which can be attributed to the Omicron variant of COVID-19, equates to a difference of 258,420 in August 2022 over the August average for the previous five years. If these workers are added to the 487,700 classified as unemployed, it creates a total of 746,120 – equal to 5.3% of the labor force.

In addition, the ABS classifies 5.9% of the labor force (approximately 837,000 workers) as underemployed. Combining these figures adds up to 1.58 million workers, about 11.2% of the workforce.

Roy Morgan Unemployment and Underemployment (2019-2022)

Source: Roy Morgan Single Source January 2019 – September 2022 Average monthly interviews 5000.
Note: Roy Morgan unemployment estimates are actuals, while ABS estimates are seasonally adjusted.

*The labor force includes the employed and those looking for work – the unemployed.

This study by Roy Morgan for Australia unemployment and “partly occupied”* based on weekly interviews of 858,633 Australians aged 14 and over between January 2007 and September 2022 and includes 5,919 telephone and online interviews in September 2022. *The “underemployed” are those people who work part-time or freelance who are looking for more work.

Contact Roy Morgan to learn more about Australia unemployed and understaffed; who and where they are and the challenges they face as they seek employment opportunities.

Source: Roy Morgan Single Source October 2006 – September 2022 Average monthly interviews 4,000.
Note: Roy Morgan unemployment estimates are actuals, while ABS estimates are seasonally adjusted.

Source: Roy Morgan Single source January 2000 – September 2022. Average monthly interviews 4,000.
Note: Roy Morgan unemployment estimates are actuals, while ABS estimates are seasonally adjusted.

Source: Roy Morgan Single source April 1995 – September 2022. Average monthly interviews 4,000.
Note: Roy Morgan unemployment estimates are actuals, while ABS estimates are seasonally adjusted.

Roy Morgan’s unemployment forecast is derived from a cross-sectional survey of people aged 14+ across Australia. A person is classified as unemployed if they are looking for work, no matter when. The results are not seasonally adjusted and provide an accurate measure of monthly unemployment forecasts in Australia.

Households selected for the ABS survey are interviewed monthly for eight months, with one-eighth of the sample being replaced each month. The first interview is conducted face-to-face. Follow-up interviews are conducted over the phone.

The ABS classifies a person as unemployed if, at the time of the survey, they were actively looking for work in the four weeks to the end of the reference week and if they were available for work during the reference week.

The ABS classifies a person as employed if, when surveyed, the person worked one hour or more during the reference week for pay, profit, commission or payment in kind, or even if the person worked one hour or more without pay in a family business or on a farm.

Australian Bureau of Statistics unemployment estimates are also seasonally adjusted.

For these reasons, the Australian Bureau of Statistics unemployment estimates are different from Roy Morgan’s unemployment estimate. Gary Morgan’s concerns about the ABS unemployment estimate are clearly outlined in a 2012 letter to the Australian Financial Review, which has not been published.