Trouble in the Australian labour market with jobs and hours at a standstill

Sydney, 15 July 2025 – Employment Hero’s June 2025 Jobs Report, which draws on data from over 1.1 million payrolls, shows little change in jobs or hours since May, while wages recorded slight growth.

Australian consumer confidence remains rocky, business turnover is flat, and despite a string of rate cuts and easing inflation, the economy isn’t quite bouncing back the way many had hoped. 

“We’re seeing more casual roles and youth hiring, with fewer commitments to long-term, full-time positions,” said Ben Thompson, co-founder and CEO of Employment Hero. “Businesses are being really careful about how they spend every dollar, especially with minimum wage now up 3.5% and super contributions up 0.5%. It’s more expensive than ever to run a business.”

Key findings:

• Jobs up 6.7% YoY, but month-on-month remains flat (0.0%), revealing the labour market isn’t quite reaching expected levels of recovery
• Hours worked rose just 0.1% MoM and 0.5% YoY, with full-time hours flat, a concerning ongoing trend pointing to Australia’s productivity troubles 
• Wages rose 0.3% MoM and 5.1% YoY, with Science & Technology leading growth (+7.8% YoY and +0.6% MoM) and hitting a record $60.10/hour
• Casual jobs up 11.7% YoY, outpacing part-time (+3.1%) and full-time (+3%)
• Teen employment jumps 31.2% YoY, with 18-24 up 19.1%, continuing the youth hiring surge
• ACT and NSW remain the highest-paying states, while NT leads in both wages (+6.7% YoY) and hours worked (+2.4% YoY)

Thompson continues: “There’s this assumption that a few rate cuts and easing inflation would be enough to lift the economy, but that hasn’t quite played out. What we’re seeing now is a shift in how people think about work. Pay is becoming a bigger priority for job seekers, but for small businesses, rising wages, compliance costs and flat consumer spending make every hire a hard decision. Inflation may be easing, but for most Aussies and the businesses that employ them, prices still feel painfully high.”

See the Employment Hero’s June 2025 Jobs Report for the full insights.