November 2024 saw Australia’s retail and hospitality sector see its first increase in jobs growth since the same month last year, according to Employment Hero’s November SmartMatch Employment Report.
Coming off the back of Black Friday and Cyber Monday the sector showed a 2.1 per cent increase in jobs growth, the strongest month-on-month growth of any sector.
Ben Thompson, Chief Economist and CEO of Employment Hero said the resilience shown by Australia’s retail and hospitality sector during a critical year is starting to pay off.
“After a year marked by unprecedented insolvencies and closures, retail and hospitality businesses are gearing up with renewed optimism for their busiest season,” Thompson said.
“Following a record Black Friday, there’s hope that healthy sales figures this holiday period will provide much-needed momentum heading into the new year, but we need to be mindful of broader challenges faced by SMEs.
“While the seasonal spike reflects encouraging consumer activity, year-on-year growth in the retail and hospitality sectors was subdued, at just 0.3 per cent higher than in November 2023. In contrast, other industries saw significant growth in employment including consulting and strategy (+19.8 per cent) and office support (+20.2per cent), underscoring the broader shifts in the employment landscape and the availability of work.
“For the retail and hospitality sectors, the next few months will be crucial in determining whether this holiday boost can set the stage for a brighter 2025.”
The report also details wage growth, and in November median hourly wages were flat MoM (-0.2 per cent) but showed a 5.9 per cent YoY increase, largely driven by high-demand functions like banking and finance (10.0 per cent) and truck drivers (14.9 per cent).
Wage growth disparities are stark, with Tasmania reporting only 2.5 per cent YoY wage growth, slipping behind the inflation rate (2.8 per cent), while Brisbane outpaced other capitals with a 9.3 per cent YoY rise, driven by rising property prices and pre-Olympic demand.
Thompson added: “Our November employment data highlights the complexities of Australia’s job market beyond what the standard national indicators might suggest. While seasonal hiring offers short-term gains for struggling businesses, we’re not out of the woods yet.
“Long-term challenges like shrinking hours for casuals in our most critical sectors, or inconsistent wage growth, can’t be ignored. This comes amidst a tight job market where nationally, candidates far outweigh job openings.
“Job seekers are being pushed to ‘up’ their game to succeed in a competitive market, and I’d advise employers to do the same – adapting to volatile conductions and strategising on how to remain competitive is crucial for what could be another tough year for business in 2025.”
The report, informed by real-time, verified payroll data from over 1.1 million Australians and 300,000 SMEs globally, shows that despite a challenging year for retail and hospitality, November’s record-breaking Black Friday has set the stage for a retail recovery – with businesses pinning their hopes on a busy holiday season to turn the tide.
