MNI BRIEF: Aussie Unemployment Tightens Over December

Australia’s unemployment rate fell to 4.1% in December, 20 basis points lower than expected, data released today by the Australian Bureau of Statistics showed.

The outcome was also 20bp lower than in November and below the 4.4% level the Reserve Bank of Australia expects the jobless rate to reach later in 2026.

Employment rose by 65,000 in December, well above expectations for a 27,000 increase, with gains across both full-time employment (up 55,000) and part-time employment (up 10,000).

"This month we saw more 15-24 year olds moving into employment, contributing to the rise in overall employment and the fall in the unemployment rate," said Sean Crick, head of labour statistics at the ABS.

The increase in employment was driven by men, with male employment rising by 49,000, while female employment increased by 17,000.

"The growth in employed people led to the participation rate rising slightly to 66.7 per cent. This was despite a 30,000 person drop in unemployment," Mr Crick said.