Australia’s job market skipped the Christmas rush. Employment Hero data reveals hours worked fell sharply in December, with young workers taking the biggest hit. Read the full story.
What’s Happening: Australia’s job market missed its seasonal spark in December 2025, marking a sharp departure from typical end-of-year trends. Retail and hospitality, sectors that usually drive December demand, recorded a 1.7% monthly drop instead.
Why This Matters: December is traditionally a crucial earning month for younger Australians, who rely on increased casual shifts and seasonal income.
Australia’s job market went on holiday early in 2025. According to Employment Hero’s December Jobs Report, the usual end-of-year hiring surge never materialised, leaving employers pulling back hours and young workers scrambling.
The data paints a picture of caution rather than celebration. Average hours worked fell 1.5% month-on-month, 1.0% quarter-on-quarter and 1.3% year-on-year. Compare that to December 2024, when hours were largely positive, rising 0.9% month-on-month and 1.1% year-on-year.
The decline is especially stark in sectors built on seasonal demand. Even retail and hospitality, which typically drive the festive season surge, recorded a 1.7% month-on-month decline. Casual employment continued to rise on a year-on-year basis, but average casual hours fell sharply, suggesting shorter rosters rather than fewer workers.
Overall employment declined 0.2% month-on-month despite being up 6.5% year-on-year, whilst median wages rose across the board. Yet this headline figure masks a troubling trend: wages fell month-on-month for workers under 45, compounding pressure on younger Australians who depend on December shifts.
Young workers bear the brunt
The pullback was most pronounced among younger age groups. Workers aged 18–24 saw average hours fall 6.1% month-on-month and 4.5% year-on-year. Those aged 25–34 experienced a 1.9% monthly drop and 1.4% annual decline.
Median wages also fell. The 18–24 age group saw a 2.0% month-on-month decline, while the 25–34 cohort dropped 1.3% month-on-month.
“It seems the Aussie job market went on holiday early in 2025, with December’s pattern looking more like what we normally associate with January,” said Tasman Page, spokesperson at Employment Hero. “Our data suggests employers braced for a softer festive season, pulling back hours, pausing hiring, and tightening pay growth rather than leaning into the usual December demand. Even in traditionally busy sectors like retail and hospitality, roster cuts replaced roster surges. The fallout was sharpest for younger workers, who rely heavily on end-of-year shifts; many saw their hours and earnings drop just as costs peak.”
Why December fell short
Soaring inflation, ongoing cost pressures and a prolonged pause in interest rates appear to be weighing on both employers and consumers. Businesses entered the month facing higher wage bills and thinner margins, whilst households reined in discretionary spending.
“Businesses entered December more cautious than usual, managing higher wage bills and thinner margins, whilst households reined in discretionary spending,” Page explained. “The result was fewer shifts and smaller wage bumps at a time of year that typically provides a buffer heading into a seasonal cooldown. The environment is tough, but business owners are doing the best they can with the cards they’ve been dealt.”
The challenge now, Page noted, is navigating a softer demand cycle without placing too much strain on workers already feeling the pinch.
Where the jobs are
Whilst parts of the labour market softened, other areas remained solid. For Australians seeking secure or well-paid work in 2026, several roles are standing out.
The highest-paying roles (by median hourly wage) include Station Hand at a farm ($187.30), General Practitioner ($155.30), Construction Manager ($98.70), Engineering Manager ($97.20) and Growth Manager ($93.80). These figures exclude C-level, senior and partner roles.
For those prepared to clock longer hours, Local Driver roles average 179.60 hours per month, Mining Engineer 171.20 hours, Construction Worker 170.9 hours, Geologist 161.1 hours, and Auto Electrician 160.9 hours.
Job security is another measure of stability. Security Officer, Software Developer, Accountant, Sales Manager and Community Support Worker roles recorded the lowest attrition rates, suggesting workers in these positions are more likely to remain in their roles.
For the more details on the Jobs Report, visit Employment Hero Jobs Reports.
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