Underemployment has declined and participation in the labour force remains high

  • The share of workers in the labour force who want to work more hours has declined, as reflected in the underemployment rate which fell from 7.2% in March 2024 to 6.6% in September 2025.
  • This decline is primarily attributable to the drop in the female underemployment rate from 8.4% in March 2024 to 7.3% in September 2025. In comparison, the male underemployment rate fell marginally from 6.1% to 6% over the same period.

Victorian underemployment rate, by sex, 2015 to 2025

Line graph showing 10 years of data
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  • The Victorian labour force participation rate rose to 68.1% in September 2025, almost equal to the all-time high of 68.2% in September 2024.

Victorian labour force participation rate, 2015 to 2025

Line graph showing 10 years of data
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Updated