So says the latest SmartMatch Employment Report. The latest report noted that ‘wageflation’ remains a major cause for concern. September’s data revealed annual wage grew at 3.8 per cent, outpacing September inflation (CPI) at 2.1 per cent. The report pegged the median hourly wage at $42.20, which it noted as reflecting sustained wage growth across most sectors.

Construction & Trade Services led the hourly wage growth trend with a notable 8.4 per cent annual growth, while Science & Technology saw slower gains at 2.8 per cent, indicating a rebalancing across traditionally volatile sectors.

Worked hours are up

Meanwhile, average hours worked showed slight improvement after months of decline, with a 2.2 per cent increase month-on-month and a 1.3 per cent annual rise, signalling tentative productivity gains as businesses focus on efficiency.

With regards to employment types, casual employment saw a sharp rise in hours worked, up 13.3 per cent month-on-month, which the report interprets as an indication of businesses embracing flexible staffing options. In fact, casual wages grew 0.5 per cent monthly and 3.4 per cent quarterly, while full-time annual wage growth dropped by 0.9 per cent compared to August 2024.

Despite these positive developments, Ben Thompson, CEO and Chief Economist at Employment Hero reminded Australians to not get complacent.

“SMEs aren’t out of the woods yet and are still struggling with the rising cost of operating,” Thompson said. “Our data indicates that while we are seeing early signs of stability, the cost of labour and continued wage pressures present a difficult balancing act for Australian businesses. As SMEs gear up for the end-of-year season, managing these rising costs without stalling productivity will be essential to economic resilience in the coming months.”

“Our workforce is at a critical inflection point: the signs of economic recovery are emerging, and inflation is slowly coming down, however, the issue of unsustainable wage growth threatens to prematurely stunt this recovery. Now is the time for SMEs to be cautiously optimistic in the lead-up to the holiday season, which will be pivotal in determining the stability of Australia’s workforce and economy,” added Thompson.

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However, the report also highlighted the challenges the industry is facing, and that it will need at least $1.5 billion in investment in the next 12 months for the sector to create more high-value jobs and more companies in order to build Australia’s net-zero economy.

“There is no sugar-coating the situation we are in. Our planet is heading towards an epic disaster,” Mick Liubinskas (pictured, centre, with his team), Climate Salad co-founder and CEO, said. “However, we don’t need to get stuck in anxiety and apathy. There is hope, and more importantly, action. Australian climate tech founders are strong, smart, collaborative and ambitious.

“I am incredibly optimistic about the future of the Australian climate tech sector and our ability to impact meaningful change,” Liubinskas added. “However, we need more industry collaboration, more government support, and more investment dollars. $1.5 billion sounds like a lot of capital for one sector, but serious issues require serious investment, and this is the principal issue of our time.”

At the moment, 97 per cent of founders are currently hiring, and it is projected that over 5000 people will be employed by climate tech companies by 2024.

International expansion is also in the sights of many Australian climate tech companies. In fact, 47 per cent already have overseas customers and 72 per cent have intentions to expand into a new international market this year.

As a rapidly-growing industry worth over $4 billion, the report cited that Australian climate tech’s role in meeting the looming 2030 renewables and CO2 emissions reduction targets and averting climate catastrophe. Climate Salad has noted that its members have ambitions to remove 1,300 gigatons of carbon emissions by 2030.

The sector is also a priority area for the new $15 billion National Reconstruction Fund. The report says that further industry collaboration and investment is essential, especially considering the recent market downturn that has made raising capital more difficult.

“Climate tech founders are no strangers to thinking big,” Amanda Price, Partner KPMG Enterprise, Co-lead Transactions and Ventures, said. “After all, the entrepreneurs in this ecosystem are courageous enough to take on the largest challenge in human history. However, with this large-scale thinking comes large-scale challenges – proven by the fact that nearly half of all climate techs are developing a new technology from scratch. There is no playbook, which is why having support around you is critical as you grow.”

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