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Labour market momentum continues as older Australians see wage growth
Australia's labour market is showing signs of sustained momentum, with a notable increase in hours worked alongside job growth, according to Ben Thompson, CEO and co-founder of Employment Hero. The latest data reveals a complex picture of the employment landscape, where opportunities and challenges coexist.
Labour market momentum continues as older Australians see wage growth
Australia's labour market is showing signs of sustained momentum, with a notable increase in hours worked alongside job growth, according to Ben Thompson, CEO and co-founder of Employment Hero. The latest data reveals a complex picture of the employment landscape, where opportunities and challenges coexist.
"More Australians in jobs tells us the labour market still has momentum," Thompson stated, highlighting the positive trend. However, he pointed out that the critical information lies in the continued rise in hours worked. "When hours worked rise alongside jobs, it points to stronger utilisation, not just more people picking up small shifts," he explained. This trend is encouraging for workers seeking extra hours, yet the steady unemployment rate indicates fierce competition for jobs among those still seeking employment.
The Australian Bureau of Statistics (ABS) headline figures reveal a labour market that appears resilient, but Thompson cautioned that they do not fully capture the dynamics within the small and medium-sized business (SMB) sector. He noted that employers are increasingly valuing experience, even as younger candidates flood the job market. "Our data shows employers are increasingly paying for experience, even as more younger candidates enter the market," Thompson said.
One of the most striking findings from Employment Hero's data is the increase in hours worked by Australians aged 55 and over, which has risen by 1.2% year-on-year. This demographic is also experiencing the strongest wage growth, at an impressive 5.9%. "That suggests older Australians are being pulled into roles where capability and judgement are harder to replace," Thompson observed. This trend underscores the growing demand for experienced workers in roles that require specialised skills and decision-making abilities.
Despite the positive indicators, Thompson acknowledged that the benefits of this labour market momentum are not evenly distributed. "It’s proving to be a resilient labour market with genuine momentum, but the gains are not evenly shared and not everyone is getting the work they want," he said. This uneven distribution of opportunities remains a challenge for policymakers and job seekers alike.
The current state of the labour market also complicates the case for near-term interest rate cuts, according to Thompson. While the increase in hours worked is a positive sign, the steady unemployment rate suggests that the competition for jobs remains intense. This scenario presents a dilemma for economic policymakers, who must balance the need to support economic growth with the risk of overheating the labour market.
Thompson's insights into the labour market highlight the nuanced nature of employment trends in Australia. While the overall picture is one of resilience and growth, there are underlying complexities that cannot be ignored. The increasing value placed on experience, particularly among older workers, reflects a shift in employer priorities and the evolving demands of the job market.
As Australia navigates this dynamic employment landscape, the focus will likely remain on addressing the challenges faced by those still seeking work and ensuring that the gains in employment are more broadly shared. The insights provided by Thompson and Employment Hero offer a valuable perspective on the current state of the labour market and the factors driving its momentum.
Australia's labour market continues to demonstrate resilience and growth, with an increase in hours worked and a focus on experienced workers. However, the challenges of uneven opportunity distribution and intense job competition persist. As the nation moves forward, these factors will play a crucial role in shaping the future of employment and economic policy.
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