Today (January 22, 2026), the Australian Bureau of Statistics (ABS) released the latest labour force data – Labour Force, Australia – for December 2025 – which showed a relatively strong increase in employment and the rising participation rate – both good signs. Taken together the demand-side of the labour market outstripped the growth in the working age population and, as a result, unemployment fell. The increase in employment was concentrated on full-time employment, which meant that working hours rose and underemployment fell significantly. However, the reality is that it is nonsensical to argue that Australia is close to full employment.