Western Australia tops wage growth rankings with 5.6% surge in July

WA’s booming resources and construction sectors are fuelling the strongest wage growth in the country, outpacing national averages and reigniting the west’s employment momentum.

In July, Western Australia posted the strongest wage growth in the country, with a 5.6% year-on-year surge, according to the Employment Hero Monthly Jobs Report. It’s a standout figure that not only outstrips the national average of 4.6%, but underscores the power of WA’s economic backbone: mining, construction and trade.

For employers across the west, the message is clear: to attract and retain top talent in these high-demand sectors, pay packets are getting bigger.

WA isn’t the only state punching above its weight. Queensland also posted a solid 5.2% YoY wage growth, another indicator of a broader hiring and wage momentum in Australia’s north. Other states hovered closer to the national average, but it’s the resource-rich regions that are setting the pace.

The numbers behind the pay rise

Nationally, the median wage in July reached $44.47 per hour, up 4.6% from the same time last year . But in WA, it’s not just wage growth that’s impressive. Employment is also on the rise, up 6.9% YoY, while average hours worked increased by 1%. It’s a trifecta of gains, more jobs, more hours and more money, driven by infrastructure projects, resource demand, and renewed investment in trade-heavy industries.

Wages up, but not everywhere

Not every state has the same momentum. In most regions, wage growth has aligned more closely with national averages, and there are signs the broader pay surge is beginning to level off. Month-on-month growth nationally was just 0.3%, and only 0.7% over the quarter.

That slowdown, when paired with the continued rise in costs for employers, especially in areas like compliance, insurance and raw materials, adds new pressure to SME bottom lines. But for WA, where project-based work continues to ramp up, those pressures are translating into real opportunity.

Construction, trade and momentum

WA’s wage growth story isn’t happening in isolation. Nationally, the construction and trade services sector saw one of the highest wage lifts, up 6.8% year-on-year . WA’s share of that is likely substantial, with large-scale projects and a continued appetite for skilled trades driving wages higher.

In the short term, these industries are helping to power WA’s resurgence. In the long term, they signal growing confidence in the west’s ability to compete on a national scale.

What this means for employers

For SMEs in WA, this is both a challenge and an opportunity. Wage inflation puts pressure on budgets, but it also opens the door to attract high-performing workers from across the country, especially as eastern states show slower growth.