Job market booms, but falling hours keep productivity under pressure

New data shows a 6.4% hiring surge driven by engineers and young casuals. Wages rose 4.8% while working hours continued to fall.

Sydney, 13 November 2025 – After months of sluggish growth, Australia’s job market has roared back to life. Employment Hero’s October Jobs Report, based on real-time payroll data from over 1.5 million workers, shows national employment up 6.4% year-on-year and 1.6% month-on-month, the strongest monthly rise since May.

But while more Australians are finding work, they’re clocking fewer hours. Average hours worked fell 1.0% month-on-month, continuing a pattern that has now stretched across most of 2025.

“Jobs are returning with force after a slower few months,” said Ben Thompson, co-founder and CEO of Employment Hero. “Businesses are hiring again, but they’re still cautious about how much work they’re giving people. A spike in hires alongside a dip in hours suggests many Australians are patching together multiple jobs just to stay afloat. Plus, this dip in hours is across all employment types, including full-time, which is a red flag for output and job security. More people are working, but we’re not necessarily getting more done.”

Key insights:

Jobs up 6.4% YoY and 1.6% MoM – a key indicator of SMB health and expansion
Engineering leads growth (+20.4% YoY), followed by Construction (+8.2%) and Retail & Hospitality (+7.3%)
Science & Tech hiring fell in Brisbane (-6% YoY), Adelaide (-3.6% YoY), and Perth (-0.4% YoY), showing a slowdown in tech sector demand.
WA (+7.1%) and QLD (+5.8%) record highest state hiring growth
Wages up 4.8% YoY, reaching a median of $45.20/hour
Casual employment up 9.5% YoY, continuing a structural shift toward flexible work, while full-time sees a 3.7% YoY boost.
Hours worked down -1.0% MoM, despite strong hiring gains

Engineering emerged as the clear standout with double-digit gains in hiring (+20.4% YoY), while ICT saw a rare decline for a sector that’s been expanding steadily in recent years.

“It’s a fascinating contrast,” Thompson added. “We’re seeing engineers in huge demand as infrastructure, construction, and renewable projects ramp up, while tech roles have plummeted year-on-year in half of the major cities. The tech sector is hitting a lull, but it won’t last long. Businesses are still bullish on AI, so those jobs will come back in stride.

Retail and hospo roles are also in high demand as shops gear up for peak season, leaning on casual and part-time workers to fill the rosters.”

Wage growth remained steady at 4.8% year-on-year, led by Consulting & Strategy (+9.2%) and Engineering (+7.5%), while mid-level workers (25-34) are making the biggest gains amongst all age groups (+6.7% YoY).

Thompson says steady wage growth makes sense given the economic backdrop:

“It’s no surprise wages are still climbing… everything else is too. With inflation sitting at 3.2 per cent, employers are stretching to keep up. Most are trying to do right by their people, but it’s getting harder to match the rising cost of living.”

For the more details on the Jobs Report, visit Employment Hero Jobs Report