Youth wages surge as demand for young talent grows

Australian businesses are betting big on Gen Z employees, Employment Hero’s latest Jobs Report reveals. 

Australia’s youngest workers are experiencing some of the fastest wage growth in the country, according to Employment Hero’s latest May 2025 Jobs Report. The report found that in wages for 14 to 17 year olds rose 8.2 per cent compared to May 2024, while 18 to 24 year olds saw a 7.2 per cent increase. This is well above the national median of 0.5 percent wage growth over the past year. 

Despite being the newest generation to enter the workforce, Gen Z – which includes those born between 1997 and 2012 – is proving that age doesn’t necessarily equal experience, especially when it comes to adapting to an increasingly digital workforce. Having grown up online and surrounded by technology, younger workers are quick to embrace digital systems and procedures, making them highly desirable among progressive employers looking to create efficient, future-facing workplaces. 

It’s no surprise, then, that in May 2025, hiring for younger age groups also continued to show considerable growth. According to Employment Hero’s report, hiring for the 14 to 17 age group increased by a profound 31.2 percent compared to May 2024. Meanwhile, the 18 to 24 age group experienced a 19.1 percent year on year increase in hiring. 

“We’re seeing a clear shift in the way Australian businesses view young talent,” says David Holland, General Manager of Employment Hero’s Talent Marketplace. “Gen Z workers are entering the job market with digital fluency, adaptability, and a values-driven mindset that makes them incredibly appealing to forward-thinking employers. This surge in both wages and hiring reflects a broader recognition that younger employees aren’t just the future workforce, they’re already shaping how modern businesses operate today. For employers, it’s an opportunity to engage early, invest in potential, and build stronger, more tech-savvy teams from the ground up.”

This observation rings true for Ben & Jerry’s, the values-led ice cream chain that is among Australia’s most popular employers of young people. Country Manager Sean Farrell estimates the company’s ‘scoop shop network’ – referring to those working in its stores – is made up of 80 percent Gen Z workers. Its head office workforce is roughly 55 percent Gen Z. 

Farrell says the next generation of workers bring “so much” to the Ben & Jerry’s business. 

“They are generally more aligned to our values and want to have a positive impact on the world. But also they are curious, challenging, and considerate, which makes them great teammates.  They also come with fresh perspectives that push us to think differently, adopt technology and challenge the norm,” he says. 

Younger workers are also attracted to the company’s social mission – the business is widely engaged in environmental and humanitarian activism – with Farrell noting Gen Z “are far better at seeing through greenwashing or incongruent behaviours, so working for a company that doesn’t embody their personal values would be more challenging for them versus older generations.” 

This sentiment is strongly supported by findings from the Employment Hero 2024 Wellness at Work Report, which reveal that Gen Zs actively seek employers whose social, environmental, and ethical values align with their own, and are far more likely to reject companies that engage in “carewashing” token gestures without meaningful action. The report also found that only 65 per cent of Gen Z workers feel they can truly be themselves at work, pointing to a strong desire for inclusive, purpose-driven, and values-led workplace cultures

When it comes to the breakdown of employment type, Employment Hero found that casual dominated sectors like retail and hospitality have experienced an acceleration of 12.1 percent in the year since May 2024. This figure tracks with younger workers’ desire for flexibility over permanence, as many are balancing work with high school and tertiary studies, in addition to extracurricular activities. 

In addition to possessing in demand skills, wage growth for Australia’s youngest workers could also be attributed to the generation’s shift towards ‘poly-employment’, a term that refers to working more than one casual or part time job. In addition to the generation’s desire to gain diverse professional experience, as the cost of living rises, many young people are working multiple jobs to boost their sources of income and secure greater financial freedom.  

“The hiring surge for Gen Z is accelerating and the median hourly rate for 18-24-year-olds has bumped up to $33.50,” says Employment Hero CEO Ben Thompson. “The market is favouring casual workers right now, which is good news for Gen Z jobseekers looking to try out multiple roles or improve their work-life balance.”

But with casual work comes volatility. While workers in the 14 to 17 year old bracket saw a substantial year on year increase of 28 percent in hours worked, the month prior, this figure was 10 percent lower. 

See the full Employment Hero Jobs Report for May 2025.