In this review of the Australian labour market for 2001 we examine the persistence of the unemployment problems in Australia. We then review four issues: a) the youth labour market, b) the position of older males in the Australian labour market, c) work-force access to long service leave, and d) the dominant OECD supply-side policy framework that is currently driving labour market policy in Australia. Overall, the jobs market continues to be sluggish, full-time jobs are scarce and official unemployment rates disguise the extent of labour under-utilisation in Australia. © 2002, Sage Publications. All rights reserved.