Overall Australian unemployment and under-employment at 3.49 million in January; ‘Real Unemployment’ surges to 1.82 million
In January 2026, Australian ‘real’ unemployment increased 149,000 to 1,818,000 (11.2% of the workforce, up 0.8%), although under-employment dropped 111,000 to 1,676,000 (down 0.8% to 10.3%).
Roy Morgan estimates the overall workforce size (which adds together the employed and unemployed) at a record high just above 16.2 million in January – 16,212,000 to be exact, up 115,000 on a month ago, and representing 69.6% of Australians aged 14+.
The increase in the workforce was driven entirely by an increase in unemployment, up 149,000 to 1,818,000. Unfortunately, overall employment was down 34,000 to 14,394,000. There was a significant change in employment conditions with full-time employment rising 172,000 to 9,321,000 to start the new year, while part-time employment fell 206,000 to 5,073,000. Overall employment represents 61.8% of Australians aged 14+.
Detailed Roy Morgan Employment Estimates in January 2026:
- Australian workforce increased by 115,000 in January to just over 16.2 million:
In January the Australian workforce increased 115,000 to 16,212,000 driven by rising unemployment, which increased 149,000 to 1,818,000. However, employment was down by 34,000 to 14,394,000.
- Employment trends in January followed the usual workforce movements with full-time employment increasing but part-time employment down from December after the holidays:
Australian employment trends followed the usual early year workforce movements with part-time employment down 206,000 to 5,073,000, and equivalent to 35.2% of employed Australians. However, full-time employment increased by 173,000 to 9,321,000, and equivalent to 64.8% of employed Australians. This led to overall employment dropping 34,000 to 14,394,000.
- Unemployment increased by 0.8% to 11.2% in January driven by people looking for part-time jobs:
1,818,000 Australians were unemployed (11.2% of the workforce, up 0.8%), up 118,000 from December. There were far more people looking for part-time work, up 154,000 to 1,156,000, however, there were fewer people looking for full-time work, down 5,000 to 662,000.
- Under-employment was down in January; overall unemployment and under-employed at 21.5%:
In addition to the unemployed, a further 1.68 million Australians (10.3% of the workforce, down 0.8%) were under-employed, i.e. working part-time but looking for more work, down 111,000 from December. In total 3.49 million Australians (21.5% of the workforce) were either unemployed or under-employed in January.
- Comparisons with a year ago show that although the population continues to grow rapidly, the workforce and employment markets have not expanded at the same rate:
The Australian population aged 14+ in January 2026 was estimated at 23,297,000 (up 417,000 from January 2025 – above the long-term average annual growth of 303,000). The workforce in January 2026 was 16,212,000 (up just 97,000 from a year ago) – comprising 14,394,000 employed Australians (down 101,000) and 1,818,000 unemployed Australians (up 198,000).
The January Roy Morgan Unemployment estimates were obtained by surveying an Australia-wide cross section of people aged 14+. A person is classified as unemployed if they are looking for work, no matter when. The ‘real’ unemployment rate is presented as a percentage of the workforce (employed & unemployed).
Roy Morgan Unemployment & Under-employment (2019-2026)
Source: Roy Morgan Single Source January 2019 – January 2026. Average monthly interviews 5,000.
Note: Roy Morgan unemployment estimates are actual data while the ABS estimates are seasonally adjusted.
Michele Levine, CEO Roy Morgan, says the latest Roy Morgan employment estimates for January show combined unemployment and under-employment continuing at a high level above 3 million for a 14th straight month:
“The latest Roy Morgan employment estimates for January show overall Australian unemployment and under-employment increasing 38,000 to 3,494,000 (21.5% of the workforce, unchanged). Concerningly, overall unemployment and under-employment have been above 3 million for well over a year.
“The increase in labour under-utilisation in December was driven by a sharp rise in unemployment, up 149,000 to 1,818,000 (11.2% of the workforce, up 0.8%). However, there was better news relating to under-employment, down 111,000 to 1,676,000 (10.3% of the workforce, down 0.8%).
“The employment trends over the last year do not show positive longer-term developments. Australia’s population aged 14+ has increased by an estimated 417,000 to 23,297,000 since January 2025. However, the estimated workforce has increased by only 97,000 to 16,212,000.
“The workforce rise is driven by rising unemployment – up 198,000 to 1,818,000 (11.2% of the workforce, up 1.1%), but estimated overall employment is down 101,000 to 14,394,000. Concerningly, the fall in employment from a year ago has been driven by a decline in full-time employment – down 308,000 to 9,321,000, only partly made up by the increase in part-time employment – up 207,000 to 5,073,000.
“The sluggish labour market – with a net loss in full-time jobs compared to a year ago – shows the low level of productivity in the economy is stifling growth and leading to labour market stagnation.
“In addition, the latest ABS Inflation estimates for December 2025 showed official CPI at 3.8%, double the level only six months earlier for the 12 months to June 2025 (1.9%). The sharp rise in inflation prompted the Reserve Bank to raise interest rates by +0.25% to 3.85% in early February – adding to stresses in the economy.
“The biggest driver of inflation in the Australian economy is public spending – from Federal and State Governments – which crowds out private investment and reduces economic productivity. The solution to low productivity in Australia is for the Federal and State Governments to cut public spending which will reduce inflationary pressures in the economy and allow the Reserve Bank to cut interest rates.
“In the United States, the Federal Reserve cut interest rates three times in late 2025, and ‘across the ditch’ the Reserve Bank of New Zealand (RBNZ) cut interest rates nine times since August 2024 – including in both October 2025 (-0.5% to 2.5%), and November 2025 (-0.25% to 2.25%).
“As the latest Roy Morgan employment and unemployment estimates show, the Australian economy needs the chance to grow and increase productivity that can be provided by a cut to Government spending, and lower interest rates throughout the economy.
“As long as the Albanese Government continues to increase public spending the economy will remain sluggish and over 3 million Australians will continue to be unemployed or under-employed.”
This Roy Morgan survey on Australia’s unemployment and ‘under-employed’* is based on weekly interviews of 946,159 Australians aged 14 and over from January 2010 to January 2026 and includes 5,057 telephone and online interviews in January 2026. *The ‘under-employed’ are those people who are in part-time work or freelancers who are looking for more work.
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About Roy Morgan
Roy Morgan is Australia’s largest independent Australian research company, with offices in each state, as well as in the U.S. and U.K. A full-service research organisation, Roy Morgan has over 80 years’ experience collecting objective, independent information on consumers.
Margin of Error
The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.
| Sample Size | Percentage Estimate |
| 40% – 60% | 25% or 75% | 10% or 90% | 5% or 95% | |
| 1,000 | ±3.0 | ±2.7 | ±1.9 | ±1.3 |
| 5,000 | ±1.4 | ±1.2 | ±0.8 | ±0.6 |
| 7,500 | ±1.1 | ±1.0 | ±0.7 | ±0.5 |
| 10,000 | ±1.0 | ±0.9 | ±0.6 | ±0.4 |
| 20,000 | ±0.7 | ±0.6 | ±0.4 | ±0.3 |
| 50,000 | ±0.4 | ±0.4 | ±0.3 | ±0.2 |
