Global employment platform, Employment Hero, has released is SmartMatch Employment Report (SMER), which has shown some jobs growth over the December period, but long-term challenges continue to subdue the sector.
The report draws on real-time anonymised and aggregated payroll data from over 1.1 million Australians, revealed an overall 4.5 per cent year-on-year rise in wage growth and a 7.6 per cent year-on-year boost in employment, however, short-term data hinted at employers’ reluctance to expand workforces.
With the retail, hospitality and tourism sectors, the seasonally adjusted data revealed subdued activity, during what should be the busiest season.
Wages dropped -0.1 per cent month-on-month and -0.6 per cent quarter-on-quarter, while employment grew by just 3.8 per cent year-on-year.
Employment Hero said: “A conflation of rising operational costs, shifting consumer behaviour and potential sales-fatigue seems to have left businesses reluctant to expand staff hours or raise pay as economic pressures linger.”
Ben Thompson, CEO at Employment Hero added: “December’s employment data tells a nuanced story of the Australian job market. Sectors like technology and construction continue to thrive, fuelling new opportunities for job seekers.
“The cooling in retail, healthcare, and casual work, coupled with reduced hours for younger workers however, indicate a cautious approach from employers navigating rising costs and economic uncertainty, prioritising tenure and safe bets.
“Aussie small businesses are continuing to feel the pressure from increased expenses, andlikely, headwinds of new compliance and regulatory requirements coming into play in this year, which may create reluctance to expand their teams.
“Despite this, the upcoming election year brings a sense of optimism for the small business sector and their employees, which may shift priorities toward balancing stability with growth.
“The potential for new policies and support measures on the horizon raises an opportunity to address persistent challenges impacting the nation’s most vital sectors, while creating valuable employment opportunities for Australia’s current and future workforce.”