Hiring growth dips as businesses navigate tougher operating conditions

SYDNEY, AUSTRALIA, XX May 2026, Australian businesses are becoming more cautious about hiring, with new data from Employment Hero revealing employment growth stalled in April as employers navigate ongoing economic pressure and rising operating costs.

The latest Employment Hero Jobs Report found employment growth dipped slightly to -0.1% MOM in April, ending a three-month run of workforce expansion.

At the same time, casual work continued to surge, with casual employment growing 11% YOY,  more than double the growth rate of full-time employment (5%) and significantly ahead of part-time employment (2.9%).

The report, based on aggregated payroll data from more than 23,000 businesses and 1.7 million employees, suggests businesses are increasingly prioritising flexibility as they manage softer economic conditions and ongoing cost pressures.

Employment Hero APAC Managing Director James Keene said the data points to a labour market that remains resilient overall, but where businesses are becoming far more measured in their approach to hiring.

“Businesses are still hiring, but the pace of growth has clearly slowed as employers become more cautious about expanding their workforce,” Keene said.

“After several years of rapid hiring and intense competition for workers, many businesses are now focused on protecting margins, managing costs carefully and building more flexibility into their workforce models.

“The continued strength in casual employment highlights that employers still need access to talent, but they increasingly want the ability to scale workforces up or down depending on demand.”

Despite the monthly stagnation, annual employment growth remains strong at 8.4% YOY, continuing an upward trajectory that has been building since late 2025.

Meanwhile, wages posted their strongest monthly increase in more than six months, rising 1.6% MOM in April. Annual wage growth sits at 4.8%, remaining above inflation and representing continued real wage growth for many Australian workers. Median hourly wages now stand at $46.30 nationally.

Keene said businesses are balancing the need to attract and retain workers with mounting pressure on profitability.

“Wages are continuing to rise, which is positive news for workers, but it also adds to the cost pressures many businesses are already carrying.

We’re seeing employers become increasingly strategic about hiring decisions and more focused on workforce efficiency and productivity. Rather than aggressive expansion, businesses are taking a more disciplined approach to growth in the current environment.”

Employment Hero’s monthly Jobs Report provides a real-time snapshot of labour market conditions using first-party payroll and employment data from businesses across Australia.