Part-time wages increase, SMB headcounts stall in August

New data has revealed a cooling in employment compared to the peak growth seen earlier this year.

Data from Employment Hero’s August Jobs Report told a story of patchy headcount and wage changes, with uneven impacts on SMBs depending on workforce structure and location.

The report, which surveyed more than 23,000 businesses and 1.7 million employees, showed a slight improvement in headcount growth, increasing from -0.1 per cent in July to 0.1 per cent in August. More startling, however, was the platform’s lowest-recorded quarterly figure of 0.6 per cent since May.

Part-time employees saw strong annual wage growth of six per cent year on year – the highest recorded by the platform – compared to 4.4 per cent for full-time workers, suggesting businesses are responding to a cooling market by investing in flexible workers without committing to full-time wages.

According to APAC managing director at Employment Hero, James Keene, the month’s figures point to a more measured and cautious approach to workforce growth amid dynamic, reactive conditions.

“Businesses are still hiring, and wage growth remains resilient, but slowing headcount growth suggests SMBs are being more deliberate about where they add roles and skills,” Keene said.

Further, the data pointed to a significant geographical divergence, whereby South Australia recorded the country’s strongest hiring momentum with a 1.8 per cent headcount increase month-on-month and 3.2 per cent over the quarter, while NSW reached negative figures in employment growth, falling 0.6 per cent over the quarter.

Certain sectors also saw significant change, with demand for operational capacity and trade services being reflected in employment expansion within administration and construction at 4.6 per cent and 2.4 per cent quarter-on-quarter, respectively.

At the same time, higher-earning sectors including science and technology fell by 2.9 per cent over the quarter.

Broadly speaking, Keene said the data shows how geography and workforce structure are having a significant impact on SMB headcount and recruitment.

“To navigate this environment, SMB leaders are focusing heavily on productivity. They aren’t losing ambition, but they are turning to technology, automation and AI to help their existing teams do more before committing to major headcount expansions.”

Keene also noted that the market is likely to remain selective in the near term as organisations consider more deliberate and targeted hiring rather than reactive recruitment, adding that it is likely changes will emerge between regions and workforce types.

“Stronger wage growth among part-time workers points to the continued value employers place on flexibility, while hiring growth in parts of the country shows there is still capacity to expand where conditions support it.”

Keene said the main challenge for employers is striking a balance between supporting a workforce through higher living costs and ensuring wage increases and benefits remain sustainable.

“That means being more strategic about where you invest in skills and remuneration, while also looking for ways to improve productivity and reduce administrative pressures on teams. Technology and automation can play an important role here by helping businesses get more from their existing workforce without simply adding more headcount.”

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