Younger workers lead wage growth nationally as SMB labour market shows signs of moderation

SYDNEY, AUSTRALIA, July 2026 – New data from Employment Hero shows positive signs for younger workers in Australia’s SMB labour market, with employees aged 18–24 recording the strongest wage growth nationally and the only employment increase among all age groups month-on-month (MoM) in June.

The latest Employment Hero Jobs Report found wages for workers aged 18–24 increased 7.6% year-on-year (YoY), well ahead of all other age cohorts, while monthly employment rates for this group rose 0.4%. The results highlight the growing role younger workers are playing in supporting Australia’s SMB workforce, and could point towards employers preempting the July 1 the national minimum wage increase before the mandatory deadline.

More broadly, wage growth across Australia’s SMB sector showed signs of moderation following a strong start to the year. Wages increased 0.5% MoM in June, recovering from a -1.6% dip in May, and annual wage growth has eased to 4.3% from 5.6% at the beginning of the year, suggesting pay increases are returning to a more sustainable pace.

Employment declined marginally by -0.1% MoM following a strong 1.2% increase in May. While monthly conditions continue to fluctuate, the broader trend over the past year has remained relatively stable, with employment growth generally tracking within a narrow range.

These results suggest businesses may be taking a more cautious approach to costs amid ongoing economic uncertainty.

Employment Hero APAC Managing Director James Keene said the June data points to a labour market that remains resilient but is beginning to cool after a strong start to the year.

“June’s results suggest Australia’s SMB labour market remains resilient, although hiring momentum has softened following a strong May,” Keene said.

“One of the standout findings this month was the continued strength of younger workers. Employees aged 18-24 were the only age group to record employment growth in June and also led the nation in annual wage growth, underscoring the important contribution younger Australians are making to workforce growth across the SMB economy.

“With last month’s ABS labour force figures indicating positive employment growth, next week we expect that results will remain broadly steady, led by younger workers entering Australia’s SMB workforce.”

Based on aggregated payroll data from more than 23,000 businesses and 1.7 million employees, Employment Hero’s monthly Jobs Report provides a real-time snapshot of labour market conditions using first-party payroll and employment data from businesses across Australia.