Casual employment records weakest result in 13 months as South Australia bucks broader hiring slowdown

SYDNEY, AUSTRALIA, 13 August 2026 – Australia’s SMB labour market showed further signs of cooling in July, with casual employment falling -0.7% month-on-month, the weakest monthly result for casual workers in the past 13 months and a signal that demand for flexible labour may be softening.

The latest Employment Hero Jobs Report also found SMB headcount contracted slightly at -0.1% MoM in July, marking the weakest monthly change across the past 13 months. Despite the broader slowdown, South Australia bucked the national trend, recording the strongest employment growth across the country at 0.7% MoM, while New South Wales fell into negative growth (-0.4% MoM).

Labour market conditions also varied across the country when it came to wages. Queensland recorded the strongest monthly wage growth nationally at 1.8% MoM and maintained solid annual wage growth of 4.5% YoY. With average hourly wages now sitting at $46.80, Queensland is closing the gap on New South Wales, where average hourly wages stand at $47.20 despite lower annual growth of 3.8%.

Meanwhile, Tasmania recorded the strongest annual wage growth in the country at 5.5% YoY. While the state continues to have the nation’s lowest average hourly wage at $42.90, the result suggests workers are beginning to benefit from stronger wage gains relative to other regions.

Nationally, wages increased 1.2% MoM in July, marking a second consecutive month of growth. However, annual wage growth eased to 4.2% YoY, the lowest level recorded in the 13-month reporting period.

Employment Hero CEO Ben Thompson said that the July data shows a labour market taking a more measured approach to hiring, but not a lack of optimism among Australian businesses.

“When businesses pull back on casual hiring, it’s a clear sign they’re being forced to scrutinise every dollar and ask harder questions about how they can stretch their resources further,” Thompson said.

“It’s been a hard year for Australian businesses, but we’re not seeing them lose their ambition. Our quarterly pulse check of business leaders found more than half remain positive about the next six months. The challenge is turning that confidence into capacity. I hear from businesses every day that are under pressure to lift productivity, reduce staff burnout and be more selective about where they add headcount.”

“That’s creating the slower hiring market we’re seeing, but it doesn’t necessarily mean a weaker one. We’re standing on the edge of a once in a generation opportunity, where AI and technology can fundamentally change how productive Australian businesses can be. The question is whether we make it easier for entrepreneurs to seize that opportunity, or keep burying them in complexity.”

Younger workers saw strongest gains in July. Employees aged 18-24 recorded the strongest employment growth of any age cohort, with headcount increasing 0.9% MoM. They also led the nation on wages, with earnings rising 1.7% MoM and 8.0% YoY.

Employment Hero’s monthly Jobs Report provides a real-time snapshot of labour market conditions using first-party payroll and employment data from more than 23,000 businesses and 1.7 million employees across Australia.