Australian ‘real unemployment’ up 0.1% to 11.7%, with workforce and employment both marginally contracting
In August 2026, Roy Morgan estimates the overall workforce size (which adds together the employed and unemployed) at just over 15.8 million – 15,804,000 to be exact, down 9,000 on a month ago, and representing 67.3% (down 0.1% from July) of Australians aged 14+.
The workforce decrease was driven by a drop in employment, down 24,000 to 13,956,000, although there was a small increase in ‘real unemployment’, up 15,000 to 1,848,000.
Overall employment represents 59.4% (down 0.2% from July) of Australians aged 14+.
Australian ‘real unemployment’ increased 15,000 to 1,848,000 (11.7% of the workforce, up 0.1%), and under-employment increased 50,000 to 1,445,000 (up 0.3% to 9.1%).
Detailed Roy Morgan Employment Estimates in August 2026:
- Australian workforce was virtually unchanged, down by 9,000 in August to just over 15.8 million:
In August the Australian workforce decreased 9,000 to 15,804,000 driven by a drop in employment, down 24,000 to 13,956,000. However, ‘real unemployment’ increased 15,000 to 1,848,000.
- Drop in full-time employment drives overall fall in employment in August:
Overall employment was down 24,000 to 13,956,000 in August. The decrease was driven by a fall in full-time employment, down 81,000 to 9,012,000, and equivalent to 64.6% of employed Australians. In contrast, part-time employment was up 57,000 to 4,944,000, equivalent to 35.4% of employed Australians.
- Unemployment virtually unchanged at 11.7% despite small increase in full-time unemployment:
In August, 1,848,000 Australians were unemployed (11.7% of the workforce, up 0.1%), up 15,000 from July. This small increase was driven by more people looking for full-time work, up 35,000 to 735,000, however there were slightly fewer people looking for part-time work, down 20,000 to 1,113,000.
- Under-employment increased 0.3% to 9.1% in August, up 50,000 to 1.45 million:
In addition to the unemployed, a further 1.45 million Australians (9.1% of the workforce, up 0.3%) were under-employed, i.e. working part-time but looking for more work, up 50,000 from July. In total 3.29 million Australians (20.8% of the workforce, up 0.4%) were either unemployed or under-employed in August.
The August 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 August show continued weakness in the labour markets with combined unemployment and under-employment continuing at a high level above 3 million for a 21st straight month:
“The latest Roy Morgan employment estimates for August show overall Australian unemployment and under-employment up 65,000 to 3,293,000 (20.8% of the workforce, up 0.4%). Labour under-utilisation has now been above 3 million Australians for 21 straight months since late 2024.
“The increase in labour under-utilisation was due to increases in under-employment, up 50,000 to 1,445,000 (9.1% of the workforce, up 0.3%) and a small rise in ‘real unemployment’, up 15,000 to 1,848,000 (11.7% of the workforce, up 0.1%).
“Most concerningly, there has been a sixth straight monthly decline in employment, down 24,000 to 13,956,000. This fall was driven by a decline in full-time employment which fell 81,000 to 9,012,000. In contrast, part-time employment was up 57,000 to 4,944,000. These estimates show employment markets remain weak with employment down significantly from earlier this year.
“The Roy Morgan ‘real unemployment’ estimate of 11.7% is more than double the latest official ABS unemployment estimate of 4.5% for July 2026 – but aligns more closely with broader official estimates of unemployment. The ABS Potential Workers survey released in late July shows 1.7 million Australians are not working but wanting to work – the ‘potential workers’ – a comparable number to Roy Morgan’s monthly estimate of 1.85 million.
“There is a similar dynamic in the United States as the Bureau of Labor Statistics (BLS) publishes the official US unemployment estimate each month – known as the ‘U3 measure of labour underutilisation’ which was estimated to be at 4.1% for August 2026.
“However, the BLS also publishes a broader ‘U6 measure of labour underutilisation’ – which is often called ‘Real Unemployment’. This is highlighted by pollster Gallup in this article – ‘Real Unemployment – Department of Labor (U6). The latest estimates are that ‘Real Unemployment’ in the United States was at 7.7% – almost double the widely quoted U3 figure – see below for more detail from this article.
“The weakness in the Australian labour market 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.
“The latest ABS Inflation estimates for the 12 months to July 2026 show inflation at 3.5%, still well above the Reserve Bank’s target range of 2-3%. The continuing high inflation has led many to speculate that the Reserve Bank will be forced to raise interest rates again.
“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 991,877 Australians aged 14 and over from January 2010 to August 2026 and includes 7,169 telephone and online interviews in August 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 |
