Part-time wage growth accelerates to record high as South Australia leads geographic divide in SMB hiring

SYDNEY, AUSTRALIA, 22 September 2026 – Australia’s small and medium-sized business (SMB) sector is experiencing a multi-speed reality, with record part-time wage growth and strong regional hiring hubs balancing out a broader slowdown across major eastern metro areas.

The latest Employment Hero Jobs Report reveals that while overall monthly headcount edged up just 0.1% MoM (and 0.6% over three months; the lowest quarterly trajectory in the 13-month reporting history), wage pressures remain universal. Median hourly rates surged 1.6% MoM to $41.17/hr—one of the strongest monthly gains recorded in the reporting window. While this pushed annual wage growth up slightly to 4.5% YoY, the broader trend continues to point toward a cooling trajectory from the peak growth seen earlier this year.

Part-time employees were the main beneficiaries as per August data, with annual wage growth hitting a record high of 6.0% YoY. This compares to 4.4% YoY for full-time workers and 4.9% YoY for casuals.

Geographically, a sharp divide is taking shape. South Australia recorded the nation’s strongest hiring momentum, with headcount expanding 1.8% MoM and 3.2% over three months, alongside above-average wage growth of 5.1% YoY. Conversely, Australia’s largest economic engines are stalling: New South Wales headcount fell -0.6% over three months, while the ACT contracted -1.6% over three months.

At an industry level, demand is shifting toward operational capacity and trade services. Administration & Office Support (+4.6% vs 3m ago) and Construction & Trade Services (+2.4% vs 3m ago) led employment expansion. Meanwhile, higher-earning sectors pulled back on headcount, led by Science & Technology (-2.9% vs 3m ago).

Employment Hero APAC Managing Director James Keene said the August figures highlight a pragmatic SMB market navigating structural shifts across regions and employment types.

“What we’re seeing in August is an SMB sector moving at different speeds depending on geography and workforce structure,” Keene said.

“Businesses are clearly adjusting their hiring strategies to maintain flexibility. Part-time workers are securing the strongest wage increases we’ve seen all year, reflecting a market where employers are paying top dollar to secure flexible capacity without necessarily locking in full-time headcount.

“The geographic split is equally striking. Regional and resources-adjacent states like South Australia, Queensland and Western Australia are showing strong confidence and adding headcount. But the drag from eastern metro markets like New South Wales and Victoria shows that larger city businesses are operating under significant cost strain and scrutinising every new role.

“To navigate this environment, SMB leaders are focusing heavily on productivity. They aren’t losing ambition, but they are turning to technology, automation and AI to help their existing teams do more before committing to major headcount expansions.”

Youth employment also remained a bright spot, with 18-to-24-year-olds leading overall gains across both employment (+2.5% vs 3m ago) and wages (+8.2% YoY).

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