The November edition of the Employment Hero SME Index reveals that while the number of SME-employed employees grew by 7.7 per cent in the past year, compared to last month it only grew by +0.1 per cent.
The same is true for year-on-year median wages, which rose by 8.6 per cent in the past year but has seen no growth since October.
In November 2022, the average number of employees among Australian SMEs was 17 points more than in January 2019, but the growth from October to November 2022 was marginal at 0.7 points.
The research noted that in November, the median hourly rate for employees working in Australian SMEs was $35.00. Since November 2021, median wages grew by +6.8 per cent for the Under 18 demographic, +7.9 per cent for 18-24-year-olds, +8.6 per cent for employees aged 25-64, and +6.7 per cent among 65+. While median rates continue to grow month on month for under 18s (+2.5 per cent) and 18-24-year-olds (+0.5 per cent), this was not the case for 25-64-year-olds and 65+-year-olds, which saw no change over the same period. For workers aged 65+, the median hourly rate has not changed in the last three months. The median hourly rate was $17.00 for those under 18, $29.70 for 18-24-year-olds, $38.00 for 25-64-year-olds and $35.00 for 65+-year-olds.
“Our November data still indicates that SMEs across Australia have seen growth year on year,” Ben Thompson, Founder and CEO of Employment Hero, said. “The pace of employee growth from October to November tells a similar story to previous months, while employee growth has not declined (which, if we reflect on the last 12 months, is remarkable in itself), it has been stagnant or marginal.
“There’s no sugarcoating that SMEs have a tough year on the horizon as economic pressures and ongoing supply chain issues take their toll,” Thompson added. “The resilience shown by business owners over the last few years will continue to underpin every decision they make. While the demand for talent might be softening, it’s still there. It will be interesting to watch how the surge in skilled migrants and the expanded visa policy will help to alleviate these talent shortages and push up month-on-month employee growth.”
Thompson also pointed out that while median wages have grown across all age groups year on year, the median rates month on month differ across age brackets in our November data.
“While under 18s and 18-24s experienced growth, this was not the same for 25-65+-year-olds. For 65+-year-olds specifically, the median hourly rate has not changed in three consecutive months,” Thompson concluded.
