The average hourly pay of shift workers across all generations dropped during the month of July, according to the latest Deputy Hourly Work Index.
Employees across all four industry sectors – healthcare, hospitality, retail and services – are working longer shifts, more frequently, and for a higher total of hours compared to last month.
Across all generations – Baby Boomers, Generation X, Millennials and Generation Z – a drop in average hourly pay has been observed. Gen Z is feeling the pinch the most, earning the least per shift on average.
Despite the rise in shift hours, employee turnover has increased, and scheduling predictability has declined across all industries. Existing staff are likely stepping in to cover shortages, adding pressure to an already stretched workforce.
Deputy chief financial officer, Emma Seymour said, “The July Hourly Work Index highlights the resilience of Australia’s hourly workforce but also highlights significant challenges. The increase in average hours and shifts worked across all major industries suggests a positive shift in economic activity.
“However, the accompanying rise in employee turnover and the decline in predictable scheduling are concerning trends that underscore the ongoing volatility in the job market, where workers are being asked to do more with less stability.
“What’s particularly concerning is how these trends are impacting different generations. For Baby Boomers and Generation X, who often juggle work with family responsibilities, the decrease in average hourly pay alongside longer hours adds significant strain, especially when it comes to affording essential support like childcare.
“Millennials, while building their careers, face similar pressures as they strive for financial stability in an uncertain economy. Generation Z, at the start of their careers and earning the least, are struggling to cover basic expenses like rent and groceries as their pay decreases.
“This generational disparity highlights the critical need for businesses to offer more stability and predictability to their workforce. By ensuring workers have adequate notice of their schedules and a regular cadence of work, businesses can support employee well-being, enhance productivity, and improve retention in these challenging times.”
The accommodation sector saw a significant 14.38% rise in hours worked, while bars and cafes experienced slight increases of 1.58% and 2.97%, respectively, compared to the previous month. The upticks in hours worked could suggest that more people are going out and engaging in social activities compared to the month before, reflecting an improving demand for hospitality services as consumer confidence and social activities rebound.
The overall drop in new hires in the retail industry was driven by a 2.96% decrease in new employees in clothing and personal care, reflecting reduced consumer spending on non-essentials. Additionally, gyms saw a 55.84% drop in new hires, home, hardware, and garden stores saw a 26.98% decrease, and pharmacies experienced a 27.98% decline.
However, automotive, electronics and appliance stores saw a 12.73% increase in new hires, and food and beverage stores reported a 9.86% rise, indicating that consumers are prioritising essential goods over discretionary items.