Australia’s flipped labour market: Teens and tradies cashing in while productivity stalls

SYDNEY, AUSTRALIA – May 14, 2025: Australia’s labour market is undergoing a major shake-up, according to Employment Hero’s April Jobs Report. Wages are booming – and this growth is not led by techies or corporate climbers, but tradies, teens and casuals. Construction workers and Gen Z are now setting the pace on pay, while white-collar sectors begin to stall.

Fresh data from over 300,000 businesses shows Construction & Trade Services topping the nation for wage growth, and teens are scoring the biggest pay rise of any age group. Casual workers remain the engine of the economy, leading in both wage and employment growth as businesses chase flexibility in a tight labour market.

The Numbers:

🟠 Employment growth: +6.0% YoY but down  -0.1% MoM – hinting the start of a slowdown 

🟢 Wages: Median hourly rate reached $44.30 (+5.9% YoY, +1.8% MoM)

🔴 Hours: Flat YoY, with a -1.7% drop MoM – a potential early warning of productivity pressures

Ben Thompson, CEO at Employment Hero, commented:

“It’s a good time to be a young person entering the job market. Gen Z is in high demand, especially for casual and flexible roles, and employers are willing to pay for it. 

What’s striking is that blue-collar industries like construction are now outpacing traditional white-collar sectors in both wage and job growth. The highest pay rises are happening on job sites—not in tech labs or office towers.

But while wages are rising, average hours worked are holding flat or falling, which raises questions.

If people are earning more but working less, are we seeing the early signs of AI-driven efficiency gains? It’s still early days, so this may be a red flag that businesses are paying more for less. 

Either way, this divergence is something policymakers and business leaders should watch closely.”

Tradies and teens lead wage and employment growth

Construction & Trade Services is now Australia’s top-paying growth sector, with wages rising 8.0% year-on-year, outpacing even high-skilled fields like Science & Technology (+5.4%). NSW saw the biggest annual wage gains (9.7%), while QLD saw the biggest monthly bump (2.1%). Job growth in the sector hit 7.0% YoY, showing no signs of slowing.

Young Australians are also earning their keep:

• Teens are the fastest growing cohort in the workforce. 14–17 year olds saw +13.4% YoY wage growth, +28.2% employment growth – a potential sign Aussies are getting jobs sooner as cost of living bites
• Uni students and grads are landing well-paid gigs. 18–24 year olds saw +8.9% YoY wage growth, +16.4% employment growth
• Both groups also worked significantly more hours, defying the broader market trend

Casuals are in high demand and earning more—but working less

Casual workers continue to be the biggest driver of the labour market and saw the largest wage increase across all employment types at +7.3% YoY, driven by the Easter holiday surge in retail and tourism. But hours worked among casuals fell quarter-on-quarter, suggesting that flexibility might be coming at the cost of stability.

Part-time and full-time roles grew slower, at +6.1% and +5.2% respectively.

Productivity warning signs emerging

While wages are rising, average hours worked remained flat YoY and fell -1.7% MoM (seasonally adjusted). The decline was sharpest among casual workers and across most states. Only Queensland showed a slight uptick in average hours worked (+0.6% YoY), while states like South Australia (-1.8%) and Tasmania (-0.9%) saw notable declines.

This divergence between rising wages and flat productivity could become a pressure point for employers as economic conditions tighten.

State leaders: QLD and SA out front

• Queensland retained its edge on employment, growing +6.5% YoY
• South Australia posted the fastest wage growth at +6.7% YoY
• Western Australia lagged behind with the weakest wage growth at +4.6% and slower job growth (+3.7% YoY)

Thompson concluded: “This data challenges a lot of old assumptions about where growth comes from. The biggest wage gains aren’t being driven by seniority or degrees – they’re being driven by mobility, flexibility, and hands-on skills. We need to rethink how we value work, where we invest in training, and how we support the parts of the workforce that are actually driving the economy forward.”