Unemployment under Australia's prime ministers

Australia's unemployment rate increased to 4.6 per cent in August. How does today's labour market compare with the unemployment rates experienced under previous prime ministers?

Benchmark Analytics has calculated the average monthly unemployment rate during each prime ministerial term using seasonally adjusted ABS data from February 1978 to August 2026.

Australia experienced markedly different labour market conditions over these 48 years. Average unemployment was 8.12 per cent during Bob Hawke's prime ministership and 9.89 per cent during Paul Keating's. During John Howard's government, it averaged 6.35 per cent, compared with 4.96 per cent during Kevin Rudd's first term.

More recently, unemployment averaged 5.37 per cent under Scott Morrison and 3.98 per cent under Anthony Albanese to August 2026.

These comparisons require care in interpretation. Prime ministers inherit economic conditions, while international recessions, financial crises, pandemics and structural changes influence employment outcomes.

The averages also cover substantially different periods. Kevin Rudd's second term provides just three monthly observations, while the available data excludes Malcolm Fraser's first two years.

Source: ABS, Labour Force, Australia, August 2026, Table 001; Benchmark Analytics calculations. Historical ABS data before February 1978 is available quarterly but is not included in this comparison.