The Australian Bureau of Statistics released May 2026 labour force data on June 25 showing the seasonally adjusted unemployment rate fell to 4.4 per cent, down from 4.5 per cent in April, which had been the highest reading since November 2021.
Employment rose by 40,000 in the month: 5,000 full-time and 35,000 part-time. The number of unemployed persons fell by 18,000. The employment-to-population ratio rose 0.1 percentage points to 63.8 per cent.
ABS Head of Labour Statistics Sean Crick said the improved result reflected easing pressure on hiring pipelines. 'The backlog of people waiting to start a job has eased in May, contributing to the 40,000 rise in employment and 18,000 fall in unemployed persons,' he said. He noted that April's elevated hours figure had been distorted by the Easter public holiday period.
The underemployment rate ticked up 0.1 percentage points to 5.9 per cent, and the broader underutilisation rate remained at 10.2 per cent.
The result complicates the Reserve Bank's position. A labour market that continues to add jobs at pace keeps consumer spending supported and maintains inflationary pressure. The June pause in rate rises may not be the last word.
NAB's most recent business survey, however, showed hiring intentions softening among surveyed firms, suggesting the strength in the May data may not persist through the second half of the year.
