Employers hitting pause on hiring

New data from Employment Hero has revealed that employment growth in April stalled, with employers navigating ongoing economic pressure and increasing operating costs.

The most recent Employment Hero Jobs Report uncovered that employment growth dipped to 0.1 per cent month on month in April, which ended a three-month run of workforce expansion.

Meanwhile, it was found that casual work continued to increase, with casual employment rising 11 per cent year on year, which was more than double the pace of full-time job growth at 5 per cent and ahead of part-time employment growth at 2.9 per cent.

Speaking on the rise of casual employment, James Keene, Asia-Pacific managing director at Employment Hero, said: “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.”

Drawing on aggregated payroll data from more than 23,000 businesses and 1.7 million employees, the report suggests that employers are placing increasingly focusing on workforce flexibility as they navigate softer economic conditions and the inevitability of rising cost pressures.

“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,” Keene said.

Despite the monthly slowdown, annual employment growth remains solid at 8.4 per cent year on year, continuing the steady upward trend seen since late 2025.

Also, wages had their largest monthly increase in over six months, rising 1.6 per cent month on month in April. Annual wage growth sits at 4.8 per cent, staying above inflation and highlighting consistent real wage growth for many Australian workers.

Median hourly wages are now at $46.30 in Australia.

While the wage increase may be seen as a positive on the surface, Keene warned of the increase in costs, adding to what is already a delicate issue for many businesses.

“Businesses are balancing the need to attract and retain workers with mounting pressure on profitability,” Keene said.

“Wages are continuing to rise, which is positive news for workers, but it also adds to the cost pressures many businesses are already carrying.”

“We’re seeing employers become increasingly strategic about hiring decisions and more focused on workforce efficiency and productivity. Rather than aggressive expansion, businesses are taking a more disciplined approach to growth in the current environment.”

While Australia’s labour market does remain resilient overall, businesses are becoming increasingly cautious as cost pressures mount.

Employers are shifting towards more flexible workforce blueprints, balancing rising wages and profitability concerns while taking a more measured and strategic approach to hiring and long-term growth.

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