Labour divide widens in May as tech wages soar and retail stalls, Employment Hero data reveals

Sydney, 27 June 2025: New employment data from Employment Hero’s May Jobs Report reveals a growing divide in Australia’s workforce. While the tech sector powers ahead, with wages jumping 9% year-on-year to nearly $60 an hour, retail and hospitality workers continue to earn less than half that, at just $28.73.

Across all industries, employment is up 6.7% compared to this time last year, but hours worked remain stubbornly flat (+0.2% YoY), flashing a productivity warning light. Plus, teens and young 20s are dominating the hiring boom, while workers 55+ saw a massive drop in hires year-on-year.

“Employers are hiring, but they’re doing it differently,” said Ben Thompson, co-founder and CEO of Employment Hero. “We’re seeing more casual roles, more fragmented shifts, and fewer hours overall. It’s a broader challenge for employers: how to lift productivity while staying agile. The focus now needs to shift from simply filling roles to enabling every team member to perform at their best.”

The report reveals:

• Tech leads the wage race, with Science & Technology wages rising 9% YoY to $59.80/hour.
• Retail and hospitality lag, with median wages at $28.73/hour (+4.6% YoY).
• Casual work surges, with employment up 12.1% YoY, far outpacing full-time and part-time growth.
• Teen hiring booms, with jobs up a whopping 30.9% YoY for 14-17 year olds, while workers 55+ saw a significant drop in hiring (-1.9% YoY).
• Queensland outperforms once again, topping both employment growth (+8.0% YoY) and wage growth (+6.5% YoY).
• Productivity concerns mount, with hours worked nearly unchanged despite sharp job growth.

The findings come amid broader signs of labour market momentum. In line with the upward trend Employment Hero is seeing across SMEs, this week’s ABS data shows job vacancies rose 2.8% in the May quarter, the first quarterly increase since 2022. Meanwhile, May CPI figures show inflation easing to 2.1%, raising hopes for interest rate cuts later in the year.

“Jobs are up, inflation is cooling, and hiring appetite is returning,” added Thompson. “But the question remains: are these jobs delivering value for workers and for employers? Quantity alone isn’t enough. From July 1, the cost of employment will rise again with the minimum wage increase and higher superannuation contributions. That’s going to force every business to think harder about efficiency, automation and how to get the most out of every hour worked. Sustainable growth means making every hire count.

”For more information visit Employment Hero’s May Jobs Report.