Australia’s unemployment rate held steady at 4.1% in February, as a decline in labour force participation offset a sharp drop in employment, according to data from the Australian Bureau of Statistics (ABS).
The economy shed 52,800 jobs over the month, significantly underperforming forecasts of a 30,000 increase. ABS head of labour statistics Bjorn Jarvis noted that alongside the fall in employment, the number of unemployed also declined by 11,000, keeping the jobless rate unchanged.
"Fewer older workers returning to work in February contributed to the fall in employment this month, with lower levels of employment in the older age groups in February 2025 compared with 2024," Jarvis said.
“This follows higher levels of employment in these age groups in recent years, particularly in 2024, alongside growth in the employment-to-population ratio over the last few years.”
However, he highlighted ongoing employment growth among those aged 15 to 54 over the past year.
The participation rate dropped to 66.8%, down from a record 67.3% in January, indicating that fewer people were either employed or actively looking for work.
"The participation rate is still relatively high, having reached a historical high last month, and is 0.1 percentage points higher than this time last year," Jarvis added.
Despite the employment decline, Jarvis noted that the employment-to-population ratio, which fell 0.4 percentage points to 64.1%, remained just 0.4 points below its historical high in December and in line with levels seen in mid-2024.
