Mobile Menu

Business Environment Profiles - Australia

Total labour force

Published: 30 August 2024

Key Metrics

Total labour force

Total (2025)

15 Millions of people

Annualized Growth 2020-25

2.3 %

Definition of Total labour force

This report analyses the total number of people in the labour force. This includes all people who are working full-time or part-time that are over the age of 15, as well as those who are not employed but are actively looking for work and are over 15 years of age. IBISWorld's annual total labour force figure is a 12-month average of monthly total labour force figures, calculated at the end of each financial year. The data for this report is sourced from the Australian Bureau of Statistics (ABS).

Analyze the wider world in which businesses operate

We measure the upstream and downstream ramifications on thousands of industries so businesses can monitor their external operating environment. Explore membership options today.

Purchase options

Included in an IBISWorld Membership

Our industry reports include 35+ pages of data, analysis and charts, including:

  • Industry Financial Ratios
    Industry Financial Ratios
  • Historical and Forecast Growth
    Historical and Forecast Growth
  • Industry Market Size
    Industry Market Size
  • Industry Major Players
    Industry Major Players
  • Profitability Analysis
    Profitability Analysis
  • SWOT Analysis
    SWOT Analysis
  • Industry Trends
    Industry Trends
  • Industry Operating Conditions
    Industry Operating Conditions

IBISWorld Premium Data

You need a Membership for access
to this data.

  • Access to your choice of 632
    industry reports
  • Access to full library of 185
    Business Environment Profiles

Get Started with an IBISWorld Membership today!

PURCHASE OPTIONS CONTACT US NOW
IBISWorld
Premium Data

You need a Membership for
access to this data.

Get Started with an IBISWorld Membership today!
PURCHASE OPTIONS

Recent Trends – Total labour force

IBISWorld forecasts the total labour force to increase by 2.2% in 2024-25, to 15.10 million people. The unemployment and participation rate increased marginally to 4.1% and 66.9% (seasonally adjusted terms) in June 2024, signalling a rise in the number of Australians actively looking for work. The escalating cost-of-living pressures are encouraging unemployed Australians to enter the labour force. Youth unemployment rate also grew to 9.5% over the same period, in seasonally adjusted terms. Many young Australians seek to enter the labour force earlier, hoping to save up early and get ahead of the cost-of-living pressures and the generational wealth gap. These trends will continue over the year, driving up the total number of people in the labour force. Additionally, the 2024-25 Budget's focus on creating more jobs and strengthening the labour force as part of the Future Made in Australia package is anticipated to support the total labour force growth during the year.

The pandemic has influenced the total labour force in several ways. For example, many people became unemployed during the initial months of the pandemic in the two years through 2020-21. People are still counted within the labour force when they leave employment as long as they actively seek jobs. However, many people who lost their jobs due to the COVID-19 pandemic claimed JobSeeker payments and were not actively looking for employment were dropped from the labour force. Conversely, the number of people in the labour force would have been much lower over the two years through 2020-21 if it had not been for the Federal Government's JobKeeper Payment scheme. The wage subsidy was provided to businesses if they had lost a significant portion of their income during the COVID-19 pandemic. This allowed firms to retain more employees during the economic downturn caused by the pandemic, keeping them in the labour force. The Australian federal government's focus on childcare subsidies over the past few years has also heightened the affordability of childcare services. These subsidies have lowered childcare expenses for families, making it economically feasible for more parents to participate in the workforce, contributing to an increased labour force.

The total labour force has increased over the past five years. Typically, the size of the labour force grows similarly to the population. Australia's population has grown over the period. Medical advances and improved technology have boosted life expectancies, contributing to the ageing population. Consequently, older generations remain in the workforce longer to build more savings for retirement, while younger generations continue to enter the workforce. Many immigrants are working-age migrants who immediately enter the labour force and contribute to its size. Constrained migration, stemming from the pandemic, has limited the growth in the total labour force in the two years through 2020-21. Nonetheless, as borders reopened in February 2022, net migration surged, driving up Australia's labour force in recent years. Overall, IBISWorld forecasts the size of the total labour force to increase at a compound annual rate of 2.3% over the five years through 2024-25.

Show more

5-Year Outlook – Total labour force

IBISWorld forecasts the total labour force to rise to 15.35 million people in 2025-26, representi...

Looking for IBISWorld Industry Reports?

Gain strategic insight and analysis on thousands of industries.

Trusted by More Than 10,000 Clients Around the World

  • IBISWorld client - VISA
  • IBISWorld client - ADP
  • IBISWorld client - Deloitte
  • IBISWorld client - AMEX
  • IBISWorld client - Bank of Montreal