Australian ‘real unemployment’ virtually unchanged at 11.6%, but workforce and employment both contracted
In July 2026, Roy Morgan estimates the overall workforce size (which adds together the employed and unemployed) at just over 15.8 million – 15,813,000 to be exact, down 75,000 on a month ago, and representing 67.4% (down 0.3% from June) of Australians aged 14+.
The workforce decrease was driven by a drop in employment, down 48,000 to 13,980,000, and a fall in unemployment, down 27,000 to 1,833,000.
Overall employment represents 59.6% (down 0.1% from June) of Australians aged 14+.
Australian ‘real unemployment’ dropped 27,000 to 1,833,000 (11.6% of the workforce, down 0.1%), and under-employment dropped 93,000 to 1,395,000 (down 0.6% to 8.8%).
Detailed Roy Morgan Employment Estimates in July 2026:
- Australian workforce decreased by 75,000 in July to just over 15.8 million:
In July the Australian workforce decreased 75,000 to 15,813,000 driven by a drop in employment, down 48,000 to 13,980,000. In addition, there was a decline in unemployment, down 27,000 to 1,833,000.
- Drop in part-time employment drives overall fall in employment in July:
Overall employment was down 48,000 to 13,980,000 in July. The decrease was driven by a fall in part-time employment, down 69,000 to 4,887,000, and equivalent to 35% of employed Australians. In contrast, full-time employment was up 21,000 to 9,093,000, equivalent to 65% of employed Australians.
- Unemployment virtually unchanged at 11.6% despite small fall in part-time unemployment:
In July, 1,833,000 Australians were unemployed (11.6% of the workforce, down 0.1%), down 27,000 from June. This small decrease was driven by fewer people looking for part-time work, down 34,000 to 1,133,000, however there were slightly more people looking for full-time work, up 7,000 to 700,000.
- Under-employment dropped 0.6% to 8.8% in July, the lowest for over two years since May 2024:
In addition to the unemployed, a further 1.4 million Australians (8.8% of the workforce, down 0.6%) were under-employed, i.e. working part-time but looking for more work, down 93,000 from June. In total 3.23 million Australians (20.4% of the workforce, down 0.7%) were either unemployed or under-employed in July.
The July 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 not employed and are looking for work, no matter when. The ‘real’ unemployment rate is presented as a percentage of the workforce (employed & unemployed).
Michele Levine, CEO Roy Morgan, says the latest Roy Morgan employment estimates for July show continued weakness in the labour markets with combined unemployment and under-employment continuing at a high level above 3 million for a 20th straight month:
“The latest Roy Morgan employment estimates for July show overall Australian unemployment and under-employment down 120,000 to 3,228,000 (20.4% of the workforce, down 0.7%). Labour under-utilisation has now been above 3 million Australians for 20 straight months since late 2024.
“The decrease in labour under-utilisation was due to a significant decrease in under-employment, down 93,000 to 1,395,000 (8.8% of the workforce, down 0.6%) and a small fall in unemployment, down 27,000 to 1,833,000 (11.6% of the workforce, down 0.1%). This is the lowest level of under-employment for over two years since May 2024.
“Of real concern is the reduction in employment, down 48,000 to 13,980,000, and now down for a fifth straight month. This fall was driven by a decline in part-time employment which fell 69,000 to 4,887,000. In contrast, full-time employment was up 21,000 to 9,093,000.
“Although the rise in full-time employment is positive, the labour force estimates show employment markets remain weak with part-time employment down for three straight months and overall employment down from earlier this year.
“The weakness in the labour market this year hasn’t been helped by the elevated inflation which led to the Reserve Bank increasing interest rates three times so far this year by 0.75% to 4.35%. This is the equal highest level of official interest rates for nearly 15 years since December 2011.
“If the Reserve Bank decides to increase interest rates again in September this will add further pressure to a weak labour market which has been struggling to grow during the last 12 months.”
This Roy Morgan survey on Australia’s unemployment and ‘under-employed’* is based on weekly interviews of 984,708 Australians aged 14 and over from January 2010 to July 2026 and includes 6,135 telephone and online interviews in July 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 |
