Wages up, hours flat: Why the job market feels like it’s stuck in second gear

Employment Hero’s latest Jobs Report shows the Aussie labour market is stalling, except if you’re a teen looking for casual work or a techie raking in $60 an hour. Here’s what small business owners need to know.

It’s a bit of a mixed bag for Aussie businesses this winter, with the latest Employment Hero June Jobs Report revealing a labour market that’s more sluggish than a Monday morning after Origin.

The report, which crunches the numbers from over 1.1 million real payrolls, shows that while wages are inching up, jobs and hours worked have barely budged. In short, things are feeling a bit… stuck.

Month-on-month job growth? Flat.
Hours worked? Up just 0.1 per cent.
Meanwhile, unemployment has ticked up and consumer confidence is wobbling again. Not the vibe we were all hoping for after a few interest rate cuts and slowing inflation.

“Businesses are being really careful about how they spend every dollar,” says Ben Thompson, CEO of Employment Hero. “It’s more expensive than ever to run a business.”

That’s thanks in part to the recent bump in the minimum wage (+3.5 peer cent) and super contributions (+0.5 per cent), which have made hiring decisions even trickier for small operators.

But it’s not all doom and gloom.

There are some clear bright spots:

Casual jobs are booming – up 11.7 per cent year-on-year

Teen employment is soaring – 31.2 per cent growth YoY, with 18–24s up 19.1 per cent

Tech and science workers are laughing – now earning over $60 an hour on average

The NT has taken the crown for biggest jump in wages and hours, knocking Queensland off the top perch

Still, the data paints a picture of an economy that hasn’t quite found its groove.

“There’s this assumption that a few rate cuts would be enough to lift the economy. But for small businesses, rising wages, compliance costs and tight consumer spending make every hire a hard decision,” says Thompson.

If you’re a small business owner feeling the pinch, you’re not imagining it. The ground may be shifting, but we’re not out of the woods yet.

Want to dive into the full data? Check out the full Employment Hero June Jobs Report.