Unemployment rate (annual) in Australia

The unemployment rate is the share of jobless people in Australia's total labour force. It is the main indicator of the state of the labour market and of the economy's capacity to create jobs, and it is published by the statistics office (ABS).

It is derived from a labour force survey of a large household sample, following internationally comparable (ILO) criteria. A person is counted as unemployed if they have no job, are available for work and are actively seeking it. This reading is taken on an annual basis.

Its path reveals how dynamic the Australian economy is. A strong labour market boosts household spending and income and is a key variable for the RBA: persistently low unemployment can reinforce wage and price pressures and support higher rates.

It is worth distinguishing whether the rate moves because of changes in labour demand or because of factors such as shifts in the participation rate. Survey data are subject to sampling error and revisions.