Employment Hero’s December Jobs Report reveals average hours worked dipped 1.5 per cent month-on-month and 1.3 per cent year-on-year. By contrast, the previous December recorded growth in hours worked, marking a clear break from the typical seasonal trend.

The drop came despite casual employment continuing to rise overall. Casual headcount increased year-on-year, but average casual hours fell sharply, pointing to shorter rosters rather than fewer workers. Retail and hospitality, which normally drive December demand, recorded a 1.7 per cent monthly decline in hours worked.

Employment slipped 0.2 percent month on month, although it remained up 6.5 percent year-on-year. Median wages increased overall, but fell on a monthly basis for workers under the age of 45, compounding pressure on younger Australians who rely on December shifts and seasonal income.

Why Did December Buck Seasonal Trends?

Tasman Page, General Manager of Marketing  at Employment Hero, said the data suggested employers approached the festive season with unusual caution.

“It seems the Aussie job market went on holiday early in 2025, with December’s pattern looking more like what we normally associate with January,” Page said. “Employers pulled back hours, paused hiring and tightened pay growth rather than leaning into the usual December demand.”

Young workers were hit hardest by the pullback. Average hours worked fell 6.1 per cent month-on-month and 4.5 per cent year-on-year for workers aged 18 to 24. Those aged 25 to 34 saw hours fall 1.9 per cent month-on-month and 1.4 per cent year-on-year.

Pay Packets Are Also Under Pressure

Median wages also declined for younger age groups – down 2.0 per cent month-on-month for staff aged 18 to 24, 1.3 per cent for those aged 25 to 34 and 0.2 per cent for the 35 to 44 age group.

“The fallout was sharpest for younger workers, who rely heavily on end of year shifts,” Page said. “Many saw their hours and earnings drop just as costs peak.”

Employment Hero data suggested broader economic factors likely contributed to the weaker December result. High inflation, ongoing cost pressures and a prolonged pause in interest rates appeared to be weighing on both employers and consumers.

“Businesses entered December more cautious than usual, managing higher wage bills and thinner margins, while households reined in discretionary spending,” Page said. “The result was fewer shifts and smaller wage bumps at a time of year that typically provides a buffer heading into a seasonal slowdown.”

Approaching 2026 With A Cooler Labour Market

SME owners who felt cautious going into the holidays may not have had a relaxing break as they navigate an uncertain start to 2026.

“The environment is tough, but business owners are doing the best they can with the cards they have been dealt,” Page said. “The challenge now is navigating a softer demand cycle without placing too much strain on workers who are already feeling the pinch.”