Australia’s jobs market slows – but Gen Z and casuals in the fast lane

SYDNEY, AUSTRALIA – April 14, 2025: Australia’s labour market is continuing a three-month trend of slowing growth and stabilisation, with wage growth decelerating, employment growth holding steady, and hours worked ticking upward, according to the latest Employment Hero Jobs Report (formerly SmartMatch Employment Report) for March.

While the broader labour market continues to reflect the impact of a slowing economy and cautious hiring practices, there are bright spots in casual employment, construction, and youth hiring, as Gen Z floods into the workforce.

The Numbers:

🟠 Employment: Holding steady at +5.9% YoY, with +0.3% MoM, signalling a plateau in growth after the recovery phase
🟠 Wages: Median hourly rate hit $43.40, a 4.7% YoY increase, though momentum has slowed to +0.6% MoM
🟢 Hours: +1.3% MoM and +0.9% YoY – a stable sign for labour market utilisation

Ben Thompson, CEO at Employment Hero, commented:

“This month’s data shows a labour market that’s stable on the surface, but evolving beneath. Employers are still leaning into casual hiring and younger talent as they seek flexibility. While inflation has been easing in recent months, the ASX was taken on a ride in recent days, and we could see this more directly impact Australian businesses in the months ahead – especially for trade-exposed sectors and those reliant on global supply chains. Employers may adopt an even more cautious stance on hiring and wage increases as cost pressures mount.

Casual workers on a winning streak

• Casual employment surged +10.1% YoY, more than triple the rate of full-time and part-time job growth (both at +2.6%). This surge reflects an ongoing shift toward flexibility and cost-efficiency as employers navigate uncertain conditions.
• Despite slower wage growth for casuals (+3.4% YoY, the lowest in a year), hours worked jumped +7.4% YoY, the strongest increase across all employment types.

Gen Z gets serious about work

• Employment for Gen Z continues to be on a hot streak. More teens are landing their first job, with employment up +27.7% YoY for the 14-17 group. Uni grads are also continuing to find work and make more money, with hiring for ages 18-24 up +15.6% YoY and median hourly wage up +6.9% YoY, landing at $33.40.
• Younger workers are not only being hired faster but also working significantly more hours, with the 14–17 group seeing a +25.5% increase in hours worked YoY.
• Plus, Gen Z is increasingly entering more technical and strategic fields. Information & Communication Technology saw a +3.5% MoM growth in Gen Z hires while Government & Defence saw a 4.2% MoM climb. Plus, Consulting & Strategy and CEO & General Management both saw massive year-on-year spikes (+41.4% and 39.5%), showing more Gen Zers are stepping into managerial roles and starting their own businesses.

Construction booms while retail comes in last

• Construction & Trade Services leads both in wage growth (+7.8% YoY) and employment growth (+6.2% YoY), underscoring continued demand for skilled trades. However, productivity remains an issue, with hours worked lagging -0.3% YoY.
• Science & Technology remains a strong sector for wages with +5.4% YoY growth, but continued its downward trend in hiring, landing it at +4.8% YoY.
• Retail, Hospitality & Tourism continues to struggle: lowest wage growth (+3.3% YoY) and weakest employment growth (+1.6% YoY), likely due to reduced consumer spending. Hours worked also dragged down by 0.1% YoY.

Queensland carries ‘job state’ crown

• Queensland recorded the highest employment growth at +7.1% YoY, maintaining its five-month title as Australia’s Job’s State. Tasmania was the only state to see a decline in employment year-on-year at -0.1%.
• Tasmania saw a surprising +2.5% MoM wage jump, by far the strongest of all states – though yearly growth was the weakest at +3.4%.
• Western Australia continues to underperform, with wage growth and employment growth at just +3.6% YoY – a historical low for job growth.

Thompson concluded:

“This increased reliance on contingent work means fewer hours with guaranteed super contributions, and that’s particularly concerning in the context of current market volatility. Superannuation balances have already taken a hit from recent trade turmoil, so employees may need to think more proactively about voluntary contributions and investment diversification. Stability in the job market is one thing – but employers and workers should also be proactive to ensure financial security down the road.”