In April 2025, the Organisation for Economic Co-operation and Development (OECD) reported a steady unemployment rate of 4.9%, continuing a prolonged period of global labour market stability. However, Australia’s performance stands out — recording a significantly lower unemployment rate of 4.1%, positioning the country as one of the stronger labour markets amongst developed economies.
OECD Snapshot: Stability Across Most Member Countries
According to the OECD, unemployment rates remained unchanged in 22 of its 33 member countries in April. While global economic uncertainty persists, the continued stability in unemployment suggests a degree of resilience across labour markets. However, there are areas of concern — most notably, youth unemployment (ages 15–24) across the OECD remains elevated at 11.2%, more than double the adult rate.
Despite steady overall figures, employment challenges remain unevenly distributed. A handful of countries recorded rising unemployment, while others posted marginal declines, signalling persistent imbalances in workforce demand, skills alignment, and economic confidence.
Australia’s Labour Market in Focus
Back home, the Australian Bureau of Statistics (ABS) revealed a seasonally adjusted unemployment rate of 4.1% in April 2025 – steady compared to the previous month. Employment rose to 14,642,700 people, while the participation rate nudged up to 67.1%, demonstrating strong engagement from the working-age population.
Notably, while overall unemployment remains low, the underemployment rate increased slightly to 6.0%. The number of unemployed individuals rose by 6,300, and those seeking full-time work increased by 9,300 — subtle signals that not all segments of the labour force are being utilised to their full potential.
This suggests that although headline unemployment remains positive, there are nuances beneath the surface. Many workers are still looking for more hours, better pay, or greater job security.
Implications for Recruiters and Employers
The divergence between low unemployment and rising underemployment presents a unique challenge – and opportunity -for recruiters and employers. In a market with low overall joblessness, finding suitable candidates becomes increasingly competitive. But the underemployment figures suggest there is still talent available, particularly amongst part-time or casual workers seeking more substantial roles.
Key considerations for recruitment professionals:
- Look deeper than the unemployment rate – Underemployment data can reveal underutilised talent pools.
- Upskill and redeploy – Bridging skill gaps with training can help fill hard-to-staff roles.
- Promote job quality – Offering permanent roles, full-time hours, or career development can attract candidates seeking greater stability.
- Consider flexible engagement models – For workers seeking increased hours or income, temporary-to-permanent placements may offer strong appeal.
With the OECD projecting continued labour stability, agencies that stay proactive in workforce planning — especially those working in essential industries like manufacturing, logistics, health, and education — are best placed to benefit.
Australia’s labour market is holding strong in comparison to global benchmarks, offering a degree of economic confidence and business continuity. However, the rise in underemployment suggests that the story isn’t just about how many people are working but whether they are working in the right jobs, with the right conditions.
For recruiters, it’s a timely reminder that the metrics that matter go beyond the headlines.
Sources
- OECD. (2025, June 12). Unemployment Rates, OECD – Updated: June 2025. Retrieved from https://www.oecd.org/en/data/insights/statistical-releases/2025/06/unemployment-rates-updated-june-2025.html
- Australian Bureau of Statistics. (2025, May 22). Labour Force, Australia, April 2025. Retrieved from https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release
- Trading Economics. (2025). Australia Unemployment Rate. Retrieved from https://tradingeconomics.com/australia/unemployment-rate
- Fibre2Fashion. (2025, June 12). OECD unemployment rate stable at 4.9% in Apr 2025. Retrieved from https://www.fibre2fashion.com/news/textile-news/oecd-unemployment-rate-stable-at-4-9-in-apr-2025-303268-newsdetails.htm
