Australia’s labor market delivered a major upside surprise in December, reinforcing the picture of persistent tightness. Employment surged 65.2k, more than double expectations of 26.5k, driven primarily by a strong rise in full-time jobs (+54.8k), with part-time employment also increasing (+10.4k).
The strength fed directly into the unemployment rate, which fell from 4.3% to 4.1%, far below expectations of 4.4% and matching the joint-lowest level since December 2024. The participation rate held steady at 66.8%, while monthly hours worked rose 0.4% mom, signaling that labor demand remains robust rather than superficial.
According to Sean Crick, head of labour statistics at Australian Bureau of Statistics, the drop in unemployment was partly driven by more younger people entering the workforce. Even so, the scale of job creation highlights an economy that continues to absorb new entrants with ease.
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