Exclusive Employment Hero Jobs Report data shows Australian small businesses are taking a cautious approach to hiring as jobs growth stalls, wage growth accelerates and casual roles dominate new employment activity.
Employment growth in cautious Australian small and medium businesses has gone into reverse for the first time in four months, despite wages posting their strongest monthly gain in over six months, according to Employment Hero’s latest Jobs Report.
The April data, drawn from anonymised businesses on the Employment Hero platform, comes as small business owners contend with overlapping pressures from the Middle East conflict, rising fuel costs and strong competition for workers. The figures suggest the uncertainty may be influencing how SMEs hire, what they pay and the types of roles they’re offering.
“Businesses are still hiring, but the pace of growth has clearly slowed as employers become more cautious about expanding their workforce,” says Employment Hero’s APAC Managing Director, James Keene. “After several years of rapid hiring and intense competition for workers, many businesses are now focused on protecting margins, managing costs carefully and building more flexibility into their workforce models.”
Casual Hiring Is Strong Despite Broader Dip
Employment across SMEs on the platform fell 0.1 per cent month-on-month in April, breaking a streak of three consecutive monthly gains that ranged between 0.8 and 1.5 per cent.
The dip may be linked to the economic ripple effects of the ongoing Middle East conflict and the ensuing fuel cost spike that has weighed on business confidence. However, the broader trend remains positive. Year-on-year employment growth sits at 8.4 per cent, a figure that has been climbing in a near-linear fashion since October.
The strongest acceleration has been in casual employment. Casual roles have grown 11 per cent year-on-year, dwarfing the 5 per cent growth in full-time positions and 2.9 per cent in part-time roles. Casual wages also moved sharply, rising 4.1 per cent month-on-month to a median hourly rate of $41.60.
The numbers hint at a deliberate workforce strategy. Facing uncertainty around fuel costs, global supply chains and consumer demand, SME owners may be favouring contract types that allow them to scale up and down without carrying fixed labour costs amid economic uncertainty. Labour shortages in some sectors may also be a factor.
“The continued strength in casual employment highlights that employers still need access to talent, but they increasingly want the ability to scale workforces up or down depending on demand,” Keene confirms.
Wages Post Their Strongest Monthly Gain in Six Months
It’s not only higher input costs squeezing small business budgets. Payroll obligations rose in April, with wages across businesses on the platform up 1.6 per cent month-on-month, the sharpest single-month increase in more than six months. The median hourly rate, drawn from platform data across all employment types, reached $46.30.
Longer term, year-on-year wage growth is sitting at 4.8 per cent. But with inflation surging last month to 4.6 per cent, workers are only slightly ahead in real terms, and will find they’re taking an effective pay cut if the CPI keeps rising as forecast.
A sector-by-sector breakdown shows a strong year for most industries despite a quiet month for recruitment. The standout performer is the Administration & Office Support sector, which has seen employment soar by 18.9 per cent over the past year. Sport & Recreation and Agriculture, Mining & Energy have also posted double-digit annual growth, rising by 11.7 and 10.6 per cent respectively. While month-on-month hiring rates were slower in April, the Government & Defence sector bucked the trend with a 4.3 per cent jump in new jobs.
Wages are also on the rise, although annual growth is below the current CPI rate in 11 out of 19 categories. Call Centre employees have seen the biggest annual pay increase at 8.8 per cent, while Real Estate salaries have climbed by 7.3 per cent. Businesses appear to be paying more for specialised advice, with Consulting & Strategy pay up 4.8 per cent in April, despite job numbers barely moving. Overall, the data reveals an economy that is leaning heavily on essential services and administrative roles to drive growth.
Queensland Leads The States On Jobs Growth
The national figures show significant regional variation. Queensland has posted the strongest year-on-year employment growth of any state at 8.6 per cent, accelerating from 5.2 per cent at the same point last year. The state’s labour market has been on a strong growth trajectory since October as the local infrastructure pipeline and population growth, ahead of the 2032 Olympics, fuels demand for workers across trades, hospitality and professional services.
At the other end of the spectrum, the Northern Territory was the only jurisdiction to record a year-on-year decline, with employment falling 1.7 per cent. However, the Territory showed recent monthly momentum of 3.1 per cent, suggesting conditions may be stabilising after a weaker stretch.
For SME owners hiring across state borders or considering where to expand, these differences highlight how labour availability, wage expectations and economic activity vary sharply between regions. For SME owners hiring across state borders or considering where to expand, these differences highlight how labour availability, wage expectations and economic activity vary sharply between regions.
“We’re seeing employers become increasingly strategic about hiring decisions and more focused on workforce efficiency and productivity,” Keene says. “Rather than aggressive expansion, businesses are taking a more disciplined approach to growth in the current environment.”
