Employment Hero data: ‘Wageflation’ hits 12 month high

• Employment Hero’s inaugural SmartMatch Employment Report reveals overall year-on-year wage growth of 8.8%, compared to the 4.1% reported by the ABS in May
• State breakdown shows wage growth for NSW at 9.9%, VIC 8.3% and QLD 9.4% – lowest growth recorded for SA at 6.7%
• Industry breakdown for wage growth reveals Construction and Trade Services at 18.0%, Consulting and Strategy at 14.0% and Real Estate and Property at 13.2% 
• Those aged 45-55 command the highest hourly wage at $50.60 and saw their wages increase by 12.0% year-on-year
• The SmartMatch Employment Report draws real-time data from the 300,000 businesses and 2+ million employees served by Employment Hero globally

SYDNEY, AUSTRALIA – August 13, 2024: The inaugural SmartMatch Employment Report from Employment Hero has revealed year-on-year median wage growth of 8.8%, a 12 month high, confirming continued concerns over ‘wageflation’.

The figures reported by Employment Hero’s July SmartMatch Employment Report are more than double the WPI wage growth figure released by the ABS back in May – which reported 4.1% annual wage growth*. 

Employment Hero’s SmartMatch Employment Report is built from the real-time employment data of the 300,000 businesses and 2+ million employees that are served by the employment platform. The figures are broken down by state, industry, age and employment type.

From the July figures, the state with the highest wage growth year-on-year is NSW (9.9%) and the state with the lowest is SA (6.7%).

State breakdowns

State	Median Hourly Rate	Month-on-Month change	Year-on-Year  change
ACT	$43.90	-0.1%	9.1%
NSW	$44.30	2.9%	9.9%
NT	$40.60	1.5%	9.4%
QLD	$41.80	3.1%	9.4%
SA	$40.0	3.5%	6.7%
TAS	$36.60	1.7%	7.3%
VIC	$41.80	1.8%	8.3%
WA	$41.0	1.8%	7.6%

At an industry level, Construction and Trade services saw the highest year-on-year wage growth at 18.0%, followed by Consulting and Strategy at 14.0% and Real Estate and Property at 13.2%. Among the lowest wage growth were industries such as Sport and Recreation (1.7%) Science and Technology (2.8%) and Design and Architecture (3.7%).

Full-time workers saw the highest year-on-year wage growth with 9.6%, part-time workers at 6.0% and casuals at 5.9%.

Those aged 45-55 command the highest hourly wage at $50.60 and saw their wages increase by 12.0% year-on-year. Those aged 14-17 saw the weakest year-on-year growth at 5.0%.

Age breakdowns

Age	Median Hourly Rate	Month-on-Month change	Year-on-Year  change
14-17	$19.10	0.2%	5.0%
18-24	$34.20	2.1%	5.8%
25-44	$45.40	2.5%	8.6%
45-54	$50.60	2.0%	12.0%
55+	$44.40	2.0%	9.1%

Chief Economist and CEO of Employment Hero Ben Thompson, commented:

“There is a current lack of real-time transparency in the employment marketplace and what someone is worth today is not necessarily what they were worth yesterday. As it stands, the data that employers and job seekers have access to is either out of date, unverified or not revealing the complete employment picture. This is especially true with wage data. Because of this the market is negotiating blindly. 

“For example, the ongoing ‘wageflation’ that our 8.8% wage increase reveals is an important metric that must be considered by decision makers, especially when viewed in the context of the RBA’s ongoing battle against inflation. The impacts of potentially unsustainable wage growth must also be weighed against ASIC’s findings that business failure rates are nearing recession levels. In terms of this month’s wage jump, we suspect it could reflect the increase in minimum wages and awards that came into effect on July 1st.

“We believe that our live payroll informed data increases transparency and can support businesses and employees to make better decisions around employment, this may include conversations around salary or offer forms of remuneration. In fact, this is exactly why we launched the SmartMatch Employment Report and the accompanying SmartMatch tool which provides real-time market insights and connections for employers and job seekers. To anyone interested in these wage insights, I would urge them to SmartMatch themselves via our SmartMatch tool.”

*How Employment Hero’s SmartMatch Employment Report differs from the ABS Wage Price Index

The median hourly wage data included in the monthly SmartMatch Employment Report differs from what is reported on by the ABS in a number of ways. For example, the ABS’ Wage Price Index, which is issued quarterly, is based on a sample of 18,000 jobs drawn from 3,000 private and public sector businesses. Survey invitations are sent to businesses of all sizes, with every business given an equal opportunity to participate.

In comparison, the SmartMatch wage data is drawn directly from the 300,000 business and 2+ million employees on the Employment Hero platform globally and is informed by real-time payroll data. In addition, the SmartMatch Employment Report is issued monthly to give the industry an on-going and up to date snapshot of employment in Australia.

Additionally, while the ABS focuses on base pay, Employment Hero’s wage data analyses the full compensation package which includes base pay, bonuses, commissions and other forms or remuneration. This provides an alternate picture of earnings and gives employers and job seekers a valuable resource for making employment decisions. In addition, Employment Hero’s data also supports policy-makers with real-time access to what is happening in the SME sector.

Alongside wage data, the SmartMatch Employment Report provides further insight, via employee growth numbers and median hours worked, again broken down by state, industry, age and employment type. 

Further information on the methodology behind Employment Hero’s SmartMatch Employment Report and additional metrics can be found in the report itself at https://smartmatch.employmenthero.com/resources/