In short:
Victoria’s unemployment rate has risen to 5.1 per cent, the highest of any Australian state, according to the latest Australian Bureau of Statistics data. While more Victorians are out of work, employment and workforce participation also increased, highlighting continued growth in the state’s labour market.
Mixed Job Market in 2026
Victoria’s unemployment rate has risen to 5.1 per cent, according to the latest Australian Bureau of Statistics (ABS) labour force figures, placing it above the national unemployment rate of 4.4 per cent.
The seasonally adjusted figures for June show Victoria recorded the highest unemployment rate of any Australian state, increasing 0.2 percentage points from May.
Despite the rise in unemployment, the data also points to continued strength in the labour market. Victoria added jobs over the month, with employment increasing 0.4 per cent to 3,814,300 people, while the state’s participation rate climbed 0.3 percentage points to 67.6 per cent.
Nationally, employment increased by 76,300 people in June, driven by a rise of 47,000 part-time jobs.
More at Play Than Job Shifting
ABS head of labour statistics Sean Crick said the increase reflected several factors beyond simply people finding new work.
“In June, we recorded a 76,000 person rise in employment, driven by a 47,000 person rise in part-time employment.
“Part of the growth in employment this month came from those who were waiting to start a job in May. This represents a stronger June movement than has been observed in recent years.
“We also continued to see higher numbers of people remaining employed this June, following elevated levels in the recent few months.”
Mr Crick said the rise in employment was accompanied by more Australians entering the labour force.
Underemployment Also Climbing
“The number of unemployed rose by 13,000 people in June, which combined with the growth in employment, led to the participation rate rising by 0.3 percentage points to 67.0 per cent in June.”
Victoria’s participation rate of 67.6 per cent remained above the national figure of 67.0 per cent, suggesting more Victorians were either working or actively looking for work.
The national underemployment rate also increased by 0.2 percentage points to 6.5 per cent in June. In Victoria, the underemployment rate sat higher at 7.3 per cent, rising 0.3 percentage points over the month.
Mr Crick said older Australians continued to play a growing role in the workforce.
“People aged 55-64 years old had the largest annual growth in the participation rate, up 0.8 percentage points to 70.6 per cent,” he said.
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