Employment growth

This measure shows the change in the number of employed people compared to the same period in the previous year.

It is important to measure employment growth because it provides insights into the strength of our local economy. Employment plays a critical role in shaping:

• living standards
• physical and mental health
• overall levels of wellbeing.

The ACT labour market stagnated in 2025. There were clear gendered differences, with men’s employment declining in 2025, while the number of employed women showed healthy growth. This was potentially due to strong job growth in industries where predominantly females are employed like Healthcare and Social Assistance whereas employment fell in industries where male employment is more common, for example, Manufacturing.

Over time, employment growth has remained stable, though annual growth in employment by quarters is somewhat volatile and can have strong base effects.

Participation rate

This measure shows the total number of people in the ACT working or in search of a job as a percentage of the working age population.

Having a job and connection with the labour force provides financial independence. It supports our social connection and sense of personal achievement.

A strong participation rate reflects that more people are engaged in the labour market, promoting financial independence, reducing inequality, and supporting inclusive economic growth.

Labour force participation in the ACT has remained strong. Between 2024 and 2025 the rate was slightly higher than the five-year average of 71.8%. The ACT continues to have one of the highest participation rates across Australia.

The gender gap in labour force participation has steadily decreased over the years. In calendar 2025, on average 74.1% of men were in the labour force, compared to 70.1% of women.

Over time, the ACT's participation rate has remained stable.

Underemployment rate

This measure shows the number of employed people who want more hours of work.

Being underemployed can have a big impact on the financial, personal and social lives of people.

The ACT's underemployment rate decreased towards the end of calendar year 2025, from 5.0% in the first quarter to 4.6% in the last quarter.

Women’s underemployment rate increased slightly in 2025, from 4.9% in the first quarter to 5.4% in the last quarter. During the same period, men’s underemployment rate reduced from 5.0% to 3.8%.

Over the last decade, the ACT's underemployment rate has been reducing steadily. This reflects strong growth in full time work in the ACT's labour market over the last three years.

Unemployment rate

This measure shows the rate of unemployment in the ACT. It is the number of people looking for work expressed as a percentage of the total number of people who have jobs or are looking for work.

Not having a job can exclude people and reduce their overall wellbeing. They may not be able to get involved in many parts of everyday life. People who are unemployed may feel like they can't support themselves, their families or their communities.

The ACT generally has one of the lowest unemployment rates across Australia. However, the labour market softened in the calendar year 2025. The unemployment rate started as 3.0% for the first quarter, rose in the middle to 4.3%, before decreasing again in the last quarter.

For the first three quarters in 2025, both men and women’s unemployment grew at a similar rate. Men’s unemployment decreased in the last quarter, returning to a similar rate as in the end of 2024 (3.9% in 2025 vs 3.7% in 2024). Women’s unemployment rate grew from 2.9% in Q1 2025 to 4.4% in Q4 2025.

Over time, the unemployment rate in the ACT has decreased.