'December's employment data tells a nuanced story of the Australian job market'
Australia's job market registered subdued activity in December despite being one of the busiest times during the holiday season, according to a new report from Employment Hero.
Its SmartMatch Employment Report found that while there was a 7.6% YoY boost in employment, December also logged the first monthly decline (-0.1%) in employment in over a year.
"December's employment data tells a nuanced story of the Australian job market," said Ben Thompson, CEO at Employment Hero, in a statement.
The subdued activity can be more observed in the Retail, Hospitality, and Tourism sectors, which are expected to be in their busiest seasons.
Instead, employment just grew 3.8% YoY, with wages dropping -0.1% MoM and -0.6% QoQ, according to the report.
Casual employment, which is popular during the holiday season, also reported a drop in average working hours by -10.7% QoQ, with wages also dipping -0.3% MoM. Employment, however, surged 13% YoY.
Younger employees - aged between 18 and 24 - also saw working hours fall -1.3% YoY in December, despite employment climbing 5.3% YoY.
"Aussie small businesses are continuing to feel the pressure from increased expenses, and likely, headwinds of new compliance and regulatory requirements coming into play in this year, which may create reluctance to expand their teams," Thompson said.
The Science & Technology industry reported the highest YoY growth of 7.9% in December, as well as the largest MoM wage growth at 3.7%, according to the report.
The Construction and Trade Services sector also saw an annual wage growth of 6.9% YoY, while the Manufacturing, Transport & Logistics employment rose +6.0% YoY.
By age, older workers aged between 45 and 54 reported a 5.5% YoY wage hike, the highest among all age groups.
"Sectors like technology and construction continue to thrive, fuelling new opportunities for job seekers," Thompson said. "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."
But Thompson said he expects the upcoming election year to bring a "sense of optimism" for small businesses.
"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," he said.