Despite the RBA’s decision, data from Employment Hero’s August Employment Report shows the economy is still struggling. Aussies could be looking at job instability and unpredictable pay coming into the holiday season, a further strain on already tight household budgets.
Key Insights:
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Wages are still growing at an unsustainable moving average of 6.2% annually, yet median hours worked fell by 2.4% month on month, and 2.0% annually, indicating businesses are struggling to manage the soaring cost of operating.
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Casual employment has surged by 9.8% annually, but has been met with a 4.9% decrease in hours worked, suggesting employers are leaning on flexible workers over permanent employees.
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Sectoral divide: Construction and trade services have seen +9.8 per cent YoY wage growth to $50.50, while Healthcare is lagging behind with just a 3.7 per cent increase to $46.30.
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Gen Z job insecurity: Young Australians aged 18-24, saw a 6.7% month-on-month and 4.4% year-on-year decline in hours worked across all sectors. While wages in the Retail, Hospitality & Tourism sector grew by 4.4% year-on-year, there was a 2.7% decrease in hours.
Ben Thompson, CEO and Chief Economist, Employment Hero said “Wage growth is outpacing productivity, which is completely unsustainable, particularly for small businesses folding under the surging cost of operating.
“It’s becoming harder for business owners to strike the right balance between maintaining staff and managing wageflation, which means more Australians will inevitably be grappling with job insecurity and inconsistent wages. Wageflation over the long term creates problems on both sides of the market, particularly where a paypacket boost today could spell a layoff in the future.”
