Australia's Jobless Rate Steady, but Underemployment Hits Yearly High

Australia's unemployment rate held at 4.3 per cent in November, but fresh labour force data points to growing cracks in the jobs market.

New figures from the Australian Bureau of Statistics show underemployment jumped from 5.7 to 6.2 per cent - its highest level in more than a year - as fewer Australians participated in the workforce. The labour force contracted by 23,400 people, while the participation rate slipped to 66.7 per cent.

Overall employment fell by 21,300 last month, with full-time jobs dropping sharply by 57,000. A rise of 35,000 part-time positions softened the blow.

Young workers were hit particularly hard, with the unemployment rate for those aged 15 to 24 climbing from 9.7 to 10.2 per cent.

Economists say the figures suggest underlying weakness despite the stable headline unemployment rate, noting that more people are working fewer hours or in roles that do not fully utilise their skills.

The data follows the Reserve Bank's decision this week to keep interest rates on hold at 3.6 per cent. The RBA said labour conditions "still appear a little tight" but that further "modest easing" is expected, signalling a cautious approach as economic indicators continue to shift.