'Our workforce is at a critical inflection point,' says expert
The median hourly wage went up to $42.20 in September 2024, according to a report.
It found that the median hourly wage increased by 0.4% month-on-month and 3.8% annually.
"Wage pressure is still high. Wages are up 3.8% annually (and still outpacing inflation of 2.8%), and over 11,000 businesses entered insolvency this past year," Employment Hero said in the report.
"Add that to the sustained cost pressures businesses have faced and paltry productivity growth, and the outlook is uncertain if not shaky."
Source: Employment Hero
By industry, the Construction and Trade Services industry recorded the biggest year-on-year change in median wages with 8.4%. Others registered:
Despite the high wage pressure, the report noted that hours worked saw a modest increase of 1.3% annually, while full-time employee growth remained steady at 4.8% annually.
According to the report, part-time employee growth slightly slowed to four per cent in September 2024. Casual employment growth, on the other hand, went up 8.8% annually.
Source: Employment Hero
"Our workforce is at a critical inflection point: the signs of economic recovery are emerging, and inflation is slowly coming down; however, the issue of unsustainable wage growth threatens to prematurely stunt this recovery," said Ben Thompson, CEO and co-founder of Employment Hero, in a statement.
"Now is the time for SMEs to be cautiously optimistic in the lead-up to the holiday season, which will be pivotal in determining the stability of Australia's workforce and economy."
