---
title: "Australia's Jobless Rate Hits 4.6 Percent Even as 39,500…"
canonical: "https://www.metaintro.com/blog/australia-unemployment-4-6-august-2026"
language: "en"
author: "drashtigarach"
published: "2026-09-24T17:19:47.000Z"
modified: "2026-09-24T17:19:47.000Z"
---

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# Australia's Jobless Rate Hits 4.6 Percent Even as 39,500 More People Were in Work

Australia's jobless rate rose to 4.6% in August as full-time jobs fell by 6,300 and part-time work grew by 45,800. What it means for your job search now.

[![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach)

[September 24, 2026](/blog/archive/2026/09)13 min read

![Low angle view of steel tram tracks on a cobbled Melbourne street catching the sunrise](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/final-10345.jpg)

[https://x.com/intent/tweet?text=Australia's%20Jobless%20Rate%20Hits%204.6%20Percent%20Even%20as%2039%2C500%20More%20People%20Were%20in%20Work&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-unemployment-4-6-august-2026](https://x.com/intent/tweet?text=Australia's%20Jobless%20Rate%20Hits%204.6%20Percent%20Even%20as%2039%2C500%20More%20People%20Were%20in%20Work&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-unemployment-4-6-august-2026)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-unemployment-4-6-august-2026](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-unemployment-4-6-august-2026)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-unemployment-4-6-august-2026&title=Australia's%20Jobless%20Rate%20Hits%204.6%20Percent%20Even%20as%2039%2C500%20More%20People%20Were%20in%20Work](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-unemployment-4-6-august-2026&title=Australia's%20Jobless%20Rate%20Hits%204.6%20Percent%20Even%20as%2039%2C500%20More%20People%20Were%20in%20Work)[mailto:?subject=Australia's%20Jobless%20Rate%20Hits%204.6%20Percent%20Even%20as%2039%2C500%20More%20People%20Were%20in%20Work&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-unemployment-4-6-august-2026](mailto:?subject=Australia's%20Jobless%20Rate%20Hits%204.6%20Percent%20Even%20as%2039%2C500%20More%20People%20Were%20in%20Work&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Faustralia-unemployment-4-6-august-2026)

Australia's seasonally adjusted unemployment rate rose to [4.6% in August 2026](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), even though employment grew by 39,500 people to 14,836,600. The catch sits inside that gain. [Full-time employment fell by 6,300](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release) while part-time employment rose by 45,800, so the net gain was in the number of people working part-time. The number of unemployed people also rose, by [28,200 to 722,900](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release). At [Metaintro](https://www.metaintro.com) we read a jobs report from the job seeker's side of the desk, so this piece goes past the headline rate to the definitions, the survey change, the job ad count and the support rules that decide what you should do next.

## What Did the August Labour Force Figures Actually Show?

The [Australian Bureau of Statistics](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release) released the August figures on 24 September 2026, and the key table tells most of the story. Employment rose by [39,500, or 0.3%, in the month](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release). Over the year, [employment is up 238,100](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), while the number of unemployed people is up 80,000, a rise of 12.4%.

Two other measures moved the other way. The [underemployment rate fell by 0.1 points to 6.2%](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-rises-46-august), which counts workers who [want and are available for more hours](https://www.abs.gov.au/statistics/detailed-methodology-information/concepts-sources-methods/labour-statistics-concepts-sources-and-methods/2023/glossary). Monthly hours worked in all jobs rose by [14 million hours](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-rises-46-august) after falling by the same amount in July, partly because more employed people worked zero hours in July than in usual July months.

The rise in the jobless rate also puts it at a level not seen for years. The August reading is the [highest since the delta outbreak in late-2021](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026), and at two decimal places it sits at 4.65%, close to rounding up to 4.7%.

## How Can Unemployment Rise When 39,500 More People Have Jobs?

The answer is that more people started looking for work than found it. The participation rate, the share of the working-age population who are working or looking, rose [0.2 points to 67.1%](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release). That is close to the [67.2% peak of January 2025](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026), and the jump in participation [expanded the labour force](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026) by far more than the gain in employment.

The flow of new entrants was unusual this year. The bureau recorded a [higher proportion of people who were previously not in the labour force moving to being unemployed](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-rises-46-august), compared to recent years. In plain terms, a larger share than usual of people who had been outside the labour force were [counted as unemployed in August](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-rises-46-august), which means they were looking for work but had not yet found it.

Why would more people start looking at once? [Westpac economist Ryan Wells](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026) points to cost-of-living pressures and interest rate rises drawing more people into the labour market, alongside longer-running rises in participation among women and older Australians. For job seekers, that could mean more applicants for each opening, even in a month when employers kept hiring.

> Employment rose by [39,500 in August](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), yet the number of unemployed Australians still climbed by 28,200 as the labour force grew faster than hiring.

## Why Did Full-Time Work Shrink While Part-Time Work Grew?

The split is the most useful number in the release for anyone planning a job search. Full-time employment fell by [6,300 to 10,193,900 people](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), and part-time employment rose by 45,800 to 4,642,600 people.

One month does not make a trend, and the part-time jump follows a fall. The August rise in part-time roles [effectively unwound the 32,000 roles lost in July](https://www.savings.com.au/news/abs-unemployment-rate-4-6-august-2026), while employment as a whole had [declined in July](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026) before this rebound.

The longer pattern points the same way, though. On a three-month average basis, annual growth in hours worked is running slightly below employment growth, which is consistent with a [multi-decade trend decline in average hours worked](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026), partly because part-time employment growth keeps outstripping full-time growth. More people are also stacking jobs, with the multiple job holding rate at a [record high of 6.9% in Q2](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026). If you are hunting for one full-time role, you may see more part-time and multi-role offers along the way.

## What Counts as a Part-Time Job in These Figures?

This is where the primary definitions change the picture. In the labour force survey, you are [employed part-time if you usually worked less than 35 hours a week](https://www.abs.gov.au/statistics/detailed-methodology-information/concepts-sources-methods/labour-statistics-concepts-sources-and-methods/2023/glossary) across all your jobs. Full-time covers people who [usually work 35 hours or more](https://www.abs.gov.au/statistics/detailed-methodology-information/concepts-sources-methods/labour-statistics-concepts-sources-and-methods/2023/glossary), plus those who worked 35 hours or more in the survey week. The survey also counts you as employed if you [worked for one hour or more for pay](https://www.abs.gov.au/statistics/detailed-methodology-information/concepts-sources-methods/labour-statistics-concepts-sources-and-methods/2023/glossary) in the reference week.

Workplace law draws the line in a different place. Under the rules set out by the [Fair Work Ombudsman](https://www.fairwork.gov.au/starting-employment/types-of-employees/part-time-employees), part-time employees work less than 38 hours per week, their hours are usually regular, and they are usually employed on a permanent basis or on a fixed term contract. A [casual employee](https://www.fairwork.gov.au/starting-employment/types-of-employees/part-time-employees), by contrast, has no firm advance commitment to ongoing work and gets a casual loading or a specific casual rate.

So the [45,800 rise in part-time employment](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release) is not the same as that many new permanent part-time contracts. It is a net change in the number of people whose usual hours across all jobs sit [under 35](https://www.abs.gov.au/statistics/detailed-methodology-information/concepts-sources-methods/labour-statistics-concepts-sources-and-methods/2023/glossary), which can include casual shifts and people holding two small jobs. If you are offered one of these roles, the contract type matters more than the label.

A genuine part-time contract carries real protections. Part-time employees get the [same minimum entitlements as a full-time employee on a pro-rata basis](https://www.fairwork.gov.au/starting-employment/types-of-employees/part-time-employees), including annual leave and sick and carer's leave, plus 10 days of paid family and domestic violence leave that is not pro-rated. Ask which type you are being hired as before you accept, and check your award's rules on part-time hours through the [pay and conditions tool on the Fair Work page](https://www.fairwork.gov.au/starting-employment/types-of-employees/part-time-employees).

## Which States and Groups Saw the Biggest Rise?

The rise was not spread evenly. In seasonally adjusted terms, [Victoria's unemployment rate reached 5.2%](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), the highest of the states, while South Australia's rate rose 0.5 points to 4.6% and Queensland's rose 0.3 points to 4.5%. [New South Wales sat lowest among the states](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release) at 4.3%.

The smoothed trend series shows a slightly different ranking, with state trend rates [barely moving in the month](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release). On the trend measure, [Tasmania recorded the highest unemployment rate](https://www.savings.com.au/news/abs-unemployment-rate-4-6-august-2026) at 5.2%, followed by Victoria at 5.1%, while the ACT posted the lowest at 4%.

Young workers also lost ground. The [youth unemployment rate rose 0.4 points to 10.8%](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release) in August. The [rate for men rose to 4.8%](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), while the rate for women held at 4.4%. If you are young and new to the market, expect more competition for entry-level roles.

## Can You Trust One Month of Data After the Survey Change?

Mostly yes, with a caution the bureau spells out itself. Under the previous survey model, respondents were asked [supplementary questions each February and August](https://www.abs.gov.au/articles/supplementary-survey-methodology-changes-labour-force-survey), which changed how people answered and was adjusted out of the figures. [From August 2026](https://www.abs.gov.au/articles/supplementary-survey-methodology-changes-labour-force-survey), those extra questions go only to the group in its last month of the survey, about one eighth of the sample, after the core questions are done.

That fix has a side effect. The old adjustment may have been [inadvertently also capturing some seasonality](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-rises-46-august), so removing it could affect August 2026 estimates. The bureau's [sensitivity testing](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-rises-46-august) indicates any impact on monthly movements is expected to be smaller than normal sampling variability, and it judges the August data fit-for-purpose. Westpac economists add that some of August's strength could partially unwind in September, but they say this is [unlikely to alter the broader picture](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026) of a gradually cooling labour market.

There was also a local adjustment. The bureau adjusted the influence of [around 1,390 respondents in one rotation group in Victoria](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), approximately 2.7% of the August sample, using the same method it applied to that group in June and July. The practical takeaway is to watch the trend line. The trend unemployment rate [rose marginally to 4.6%](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), so the direction holds even on the smoother measure.

> The bureau continues to recommend [trend data](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-rises-46-august) as the best measure of the underlying behaviour of the labour market.

## Are Employers Still Advertising Jobs?

Yes, and this is the most encouraging primary figure for job seekers this week. The [Jobs and Skills Australia vacancy index](https://www.jobsandskills.gov.au/data/internet-vacancy-index), a monthly count of online job ads, rose 0.3% in August 2026 to 212,400 ads in seasonally adjusted terms. That was an [increase of 560 advertisements](https://www.jobsandskills.gov.au/data/internet-vacancy-index), released on 23 September 2026.

Job ad numbers [remain at elevated levels](https://www.jobsandskills.gov.au/data/internet-vacancy-index) compared with 2019, running at around [25% more than the monthly average for 2019](https://www.jobsandskills.gov.au/data/internet-vacancy-index). The [index can be broken down](https://www.jobsandskills.gov.au/data/internet-vacancy-index) by occupation, skill level, state and region, so you can check whether demand for your own role is rising or falling where you live.

Put that next to the survey and the story becomes clearer. Employers are still hiring and still [advertising more roles](https://www.jobsandskills.gov.au/data/internet-vacancy-index), but with the [supply of workers expanding faster than employment](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026), more people are likely applying for each role. The job ads also tell you where to aim. The [next vacancy report, covering September](https://www.jobsandskills.gov.au/data/internet-vacancy-index), is due on 14 October 2026.

## Where Do Interest Rates Fit Into This?

The jobs figures land days before the [Reserve Bank's next rate decision](https://www.savings.com.au/news/abs-unemployment-rate-4-6-august-2026). The Reserve Bank board [meets to consider the cash rate next week](https://www.savings.com.au/news/abs-unemployment-rate-4-6-august-2026), and the [Savings.com.au news team](https://www.savings.com.au/news/abs-unemployment-rate-4-6-august-2026) judges that the rise in unemployment may not be enough to significantly alter its decision. Governor Michele Bullock has stressed that the bank remains [focused on bringing inflation back to target](https://www.savings.com.au/news/abs-unemployment-rate-4-6-august-2026), even with its dual mandate that includes full employment.

Unions read the same figures differently. The [Australian Council of Trade Unions](https://www.savings.com.au/news/abs-unemployment-rate-4-6-august-2026) argued the rise showed monetary policy was already slowing the economy, and estimated a 5% unemployment rate could mean as many as 55,000 more people out of work.

[Westpac economist Ryan Wells](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026) expects slack to keep building gradually. In Westpac's view, labour supply is outpacing demand, so slack is building [through higher unemployment rather than outright employment losses](https://www.westpaciq.com.au/economics/2026/09/labour-force-august-2026), and the bank expects this to remain the case through to early 2027. That is a forecast, not a certainty, but it suggests a slow squeeze rather than a sudden wave of layoffs.

## What Support Can You Get if You Are Out of Work?

If you have lost work or cannot find it, the main payment is [JobSeeker Payment through the Services Australia website](https://www.servicesaustralia.gov.au/jobseeker-payment). It is for people [between 22 and Age Pension age](https://www.servicesaustralia.gov.au/jobseeker-payment) who are looking for work, and you need to meet the income and assets tests and the residence rules. It also covers people who are [sick or injured](https://www.servicesaustralia.gov.au/jobseeker-payment) and cannot do their usual work or study for a short time.

From 20 September 2026, the maximum fortnightly payment for a [single person with no children is $824.90](https://www.servicesaustralia.gov.au/how-much-jobseeker-payment-you-can-get?context=51411), and $755.10 for a partnered person. Rates are [updated on 20 March and 20 September](https://www.servicesaustralia.gov.au/how-much-jobseeker-payment-you-can-get?context=51411) each year, and the amount depends on your age, whether you have a partner or dependent children, and how much income you and your partner have been paid in the past 14 days.

There are commitments attached. To keep getting the payment you need to [report every 2 weeks](https://www.servicesaustralia.gov.au/jobseeker-payment) and keep meeting your mutual obligation requirements. Because the amount depends on the income you and your partner have been paid in the past [14 days](https://www.servicesaustralia.gov.au/how-much-jobseeker-payment-you-can-get?context=51411), part-time or casual earnings can change what you get, so report them accurately.

## What This Means for Job Seekers, and What Should You Do Next?

Our take is that this is a crowded market, not a collapsing one. Employers added jobs and kept job ads at [around 25% more than the monthly average for 2019](https://www.jobsandskills.gov.au/data/internet-vacancy-index), but a rise in the number of people looking for work means more competition for each role, and the net gain was in the number of people working part-time. If you want full-time work, you will likely need to be more targeted, not just more active.

Here is what we would do:

- **Search by demand, not by habit.** Use the occupation and state breakdowns in the vacancy index to find where ads are holding up for your skills, and apply there first.
- **Treat part-time as a door, not a detour.** A permanent part-time role with pro-rata leave can be a way into an employer that later hires full-time. Our guide to [moving from part-time to full-time work](https://www.metaintro.com/blog/transition-from-part-time-job-to-full-time-career) sets out how to make that jump.
- **Check the contract type.** Ask whether an offer is part-time or casual before you sign, since the [entitlements differ](https://www.fairwork.gov.au/starting-employment/types-of-employees/part-time-employees).
- **Ask for more hours openly.** If you are already part-time and want more, say so and track it. Our piece on [handling a job with too little work](https://www.metaintro.com/blog/underemployed-overlooked-job-too-little-work) covers how to raise it.
- **Claim support early if you need it.** Check the JobSeeker rules before your savings run down, since [one or more waiting periods](https://www.servicesaustralia.gov.au/jobseeker-payment) may apply before your first payment.
- **Watch the trend, not the headline.** The [next labour force release](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), for September, is due in October, and it will show whether August's jump holds.

## Related Articles

- [Australia Says AI Has Not Triggered Mass Layoffs Yet and the Data Backs It Up](https://www.metaintro.com/blog/australia-ai-no-mass-layoffs-2026)
- [Australia Job Market Cooling](https://www.metaintro.com/blog/australia-job-market-cooling)
- [How Many Hours Is Full-Time Work, and Why the Answer Changes by Law and Employer](https://www.metaintro.com/blog/how-many-hours-is-full-time-work)
- [Why UK Youth Unemployment Is a Broken Ladder Not a Lazy Generation](https://www.metaintro.com/blog/uk-youth-unemployment-broken-ladder-not-lazy-generation-2026)
- [What Spain Did to Pull Its Unemployment Down to Nordic Levels](https://www.metaintro.com/blog/spain-unemployment-down-to-nordic-levels-2026)
- [How the Netherlands Beat Youth Unemployment and What Job Seekers Can Learn](https://www.metaintro.com/blog/netherlands-youth-unemployment-lessons-job-seekers-2026)
- [Hourly to Yearly Pay Conversion and Why the Math Changes Your Job Search](https://www.metaintro.com/blog/hourly-to-yearly)
- [How to Job Search With AI After a Layoff](https://www.metaintro.com/blog/job-search-with-ai-after-a-layoff)

## People Also Asked

### Q: What is Australia's unemployment rate in August 2026?

A: The seasonally adjusted rate was [4.6% in August 2026](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release), with 722,900 people unemployed, and the trend rate was also 4.6%.

### Q: Why did unemployment rise if jobs were added?

A: The labour force grew faster than employment, with participation rising to [67.1%](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-rises-46-august) as more people who had not been looking for work started job hunting.

### Q: Did full-time jobs fall in Australia in August?

A: Yes. Full-time employment fell by [6,300](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release) in seasonally adjusted terms, while part-time employment rose by 45,800.

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