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Australia’s seasonally adjusted unemployment rate fell to 4.1% in December 2025 from 4.3% in November, below expectations of 4.4%. It marked the lowest jobless rate since May, as the number of unemployed people dropped by 29,800 to a seven-month low of 628,600 in December from 658,400 in November. Among them, the number of people seeking full-time jobs fell by 21.400 to 421,700, while those looking for part-time jobs shrank by 8,400 to 206,800. Meanwhile, employment rose by 65,200 to a record high of 14.68 million, well above forecasts of a 30,000 gain, rebounding from an upwardly revised drop of 28,700 in November. Full-time employment rose by 54,800 to 10.10 million, while part-time employment climbed by 10,400 to 4.58 million. The participation rate ticked up to 66.7% from 66.6% in November, but below estimates of 66.8%. The underemployment rate decreased to 5.7% from 6.2% in November. Additionally, total monthly hours worked across all jobs advanced by 8 million to 2,001 million.