Underemployment and underutilisation 'u-series', March 2026

Headcount and hours-based measures of labour underutilisation covering underemployment, unemployment and the potential labour force

Cite
Print
Released
23/04/2026
Source
Labour Force, Australia, March 2026
Labour Force, Australia, Detailed, March 2026
Released
23/04/2026 11:30am AEST

Background

This article provides updated u‑series labour underutilisation estimates, for March 2026. This follows on from the article released alongside the February issue of Labour Force, Australia which introduced the 'u-series'.

The original article remains the primary reference for information on the concepts and measures, underlying framework, u-series derivations, backcasting methods and assumptions used to produce historical estimates, and implementation plans.

Headline u-series

A set of preliminary estimates and charts displaying the ‘headline’ u-series measures up to March 2026 are provided below. The data presented may be subject to change as a result of further refinements to the method, including improvements to the compilation and backcasting method.

In seasonally adjusted terms, in March 2026:

  • The u-series underemployment rate (UD-1) was 3.1%, up from 2.9% in February.
  • The u-series reduced employment rate (RE-1) was 2.4%, down from 2.5% in February.
  • The unemployment rate (UN-1) remained steady at 4.3%.
  • The u-series labour force underutilisation rate (UU-1) was 9.3%, up from 9.2% in February.

Chart 1 shows trend and seasonally adjusted headline u-series headcount rates from December 2024 to March 2026. While underemployment and unemployment remained relatively stable over this period, reduced employment experienced a peak in March 2025, in part due to impacts from Cyclone Alfred, before stabilising at lower levels.

Charts 2 to 5 show seasonally adjusted data for the four level 1 headline series – on both a headcount and hours basis, and as rates – for the period July 2014 to March 2026.

Chart 2 shows that in March 2026 there were 360,000 employed people who worked reduced hours for economic reasons, and 450,000 employed people who were underemployed (that is, they prefer, were available and actively looked for more hours). There were 45,000 people who worked less hours than usual in the reference week but also preferred more hours than usual (so are included in both the UD and RE estimates), so the total number of underutilised employed people in March 2026 was 765,000. There were also 660,000 unemployed people. Total underutilisation was around 1.43 million people.

Chart 3 shows that the reduced employment rate (the proportion of employed who worked reduced hours for economic reasons) in March 2026 was 2.4%, and the u-series underemployment rate (the proportion of employed who prefer, were available and looked for more hours) was 3.1%. The combined underutilisation amongst the employed population was 5.2% (the sum of the components does not equal the total as there are people who are simultaneously working less hours than usual and prefer more hours than usual).

This compares to an unemployment rate in March 2026 of 4.3%. The total u-series labour force underutilisation rate was 9.3%.

Charts 4 and 5 provide volume, or hours-based, estimates of the key u-series groups, showing the total number of ‘hours not worked’ by underutilised people. In March 2026 there were just under 29 million hours of available but unused labour supply, which results in volume rates of reduced employment of 0.7%, underemployment (1.1%), unemployment (3.5%) and labour force underutilisation (5.3%).

States and territories

Chart 6 shows the rates for each level in the UN-series by state and territory for March 2026. The different u-series levels show that as the job search activity and/or availability criteria are relaxed there are differing impacts across states.

Additional u-series

The following sections include data for all levels of the u-series – underemployment, reduced employment, unemployment and joblessness, and total underutilisation.

Underemployment (UD-series)

Reduced Employment (RE-series)

Unemployed and Jobless (UN-series)

Underutilisation (UU-series)

u-series spreadsheets

The spreadsheets below include level estimates and associated rates for each measure in the u-series in original, seasonally adjusted and trend terms for the period July 2014 to March 2026. 

While seasonally adjusted and trend data are included here, note that standard Labour Force Survey time-series adjustments (including applying trend breaks, where applicable) have not yet been applied.

u-series

Data files

Further information

If you have any questions on the u-series or would like to provide feedback, please email labour.statistics@abs.gov.au.