Total employees in the labour force

IBISWorld forecasts the number of employees in the labour force to climb by 1.4% in 2024-25, to an average of 14.42 million people over the year. In May 2024, the percentage of employees working full-time accounted for 69.0% of total employment, having inched downwards from 70.0% when compared with a similar period in the prior year. Growing migration over the past two years has led Australia's population to hike in 2024-25, alleviating some skill shortages that surfaced during the post-pandemic employment surge. Still, demand for skilled employees remains elevated in sectors like healthcare, Information Technology (IT), aged care and education.

The total number of employees in the labour force has continued to expand over the past decades. Economic downturns like the COVID-19 pandemic have placed downward pressure on the total number of employees and accelerated the national unemployment rate for some years. The national unemployment rate climbed over the two years through 2020-21, resulting from pandemic-related economic shutdowns. The easing of restrictions and economic recovery following the pandemic has rebounded labour demand, reducing the national unemployment rate and strengthening total employees in the labour force in more recent years.

The number of employees in the labour force has increased over the past five years. Increases in the labour force can partially be attributed to population growth. Australia's population growth rate is high relative to that of comparable developed countries due to the extensive immigration program. New residents in Australia boost consumer demand and subsequently help to create labour demand. IBISWorld forecasts the total number of employees in the labour force to swell at a compound annual rate of 2.5% through the end of 2024-25.