Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Industries with the Highest Labor Costs in Australia in 2021
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View a list of the Top 25 industries with the highest labor costsLabor Costs for 2021: $58.7B
The Professional Services subdivision provides various professional, scientific and technical services to a range of markets. The subdivision's performance is largely linked to overall economic conditions, which often determine business confidence and capital expenditure. Prior to the COVID-19 outbreak, technology development and greater business profit drove growth across the subdivision. Over the three years through 2018-19, accounting and management consultants benefited from downstream businesses looking to improve efficiencies as increased globalisation constrained profit margins. The COVID-19 pandemic has negatively affected the subdivision's largest industries, including the Engineering Consulting industry, the Management Consulting industry and Accounting Services industry. The subdivision is... Learn More
Labor Costs for 2021: $45.0B
The Public General Hospitals industry has grown over the past five years. Public hospitals are primarily funded through federal and state governments, with private health insurance and other non-public revenue sources expected to account for less than 10.0% of industry funding in 2020-21. Demand for public general hospitals has surged over the past five years, primarily due to Australia's ageing population and the rising incidence of chronic illness among adults. Industry revenue is expected to increase at an annualised 1.8% over the five years through 2020-21, to $77.7 billion. This includes anticipated revenue growth of 2.1% in the current year.
The... Learn More
Labor Costs for 2021: $37.2B
Community services organisations play an important role in supporting Australia's welfare system. Subdivision operators help to arrange care and counsel for individuals in need, including the economically disadvantaged and other vulnerable members of society, such as children and the elderly. Not-for-profit organisations and private enterprises in the Community Services subdivision are expected to receive $61.4 billion in 2020-21 from government funding, donations and private income. Subdivision revenue is expected to increase at an annualised 2.7% over the five years through 2020-21. Favourable demographic trends at both ends of the age spectrum, supported by ongoing government funding have contributed to revenue... Learn More
Labor Costs for 2021: $26.7B
The Computer System Design Services industry consists of businesses that develop and implement information technology services, programming systems and business solutions. Despite the COVID-19 pandemic, the industry has expanded strongly over the past five years, as many businesses have outsourced non-essential systems operations, and computers and IT systems have required regular upgrades and enhancements. Furthermore, increased internet connectivity has driven the industry's growth over the period, with financial services providers such as banks and insurers remaining the industry's largest clients.
Due to strong demand, industry revenue is expected to increase at an annualised 4.8% over the five years through 2020-21, to... Learn More
Labor Costs for 2021: $22.6B
The Consumer Goods Retailing subdivision has been subject to difficult retail conditions over the past five years. Weak disposable income growth and volatile consumer sentiment due to unstable economic conditions have resulted in a poor trading landscape, as households have scaled back their expenditure on non-essential goods. In addition, the rising popularity of online shopping has contributed to a fall in retail demand for many consumer goods over the period, such as photographic equipment, video games and recorded music, newspapers and books and stationery goods.
Subdivision operators have struggled with growing competition from online-only retailers, as consumers have become increasingly comfortable... Learn More
Labor Costs for 2021: $19.8B
The Temporary Staff Services industry provides skilled and unskilled labour to client companies, typically on a short-term basis. Various factors influence demand for staffing services. For example, the national unemployment rate affects industry demand, with lower unemployment generally contributing to greater demand for temporary staff. Additionally, greater business outsourcing positively affects industry demand and growth. Performance trends in client markets also affect industry operators. Strong demand from several downstream markets has benefited industry firms over the past five years, including professional services, financial services and healthcare sectors.
Industry revenue increased strongly over the three years through 2018-19, before declining significantly in... Learn More
Labor Costs for 2021: $16.6B
As Australia's population ages, demand for age-appropriate housing increases. Older individuals are more susceptible to a range of age-related ailments and need more assistance with everyday activities and personal care. As aged-care requirements have changed over the past five years, the Aged Care Residential Services industry has expanded, offering different lifestyle accommodation options. This expansion, combined with more flexible pricing and ongoing government funding for aged-care, has supported revenue growth over the period.
However, a challenging operating environment has limited the industry's growth over the past five years. Industry revenue is expected to rise at an annualised 1.4% over the five... Learn More
Labor Costs for 2021: $16.3B
The Private Schools industry delivers primary and secondary education to approximately 1.4 million students in Australia. Private schools are primarily funded by the federal and state governments. However, private schools also generate revenue through tuition fees and donations. Strong demand for private education and rising tuition fees have boosted industry revenue over the past five years. The perception that private schools deliver higher quality education, combined with the significant importance placed on education in Australia, has boosted enrolment numbers over the period. Industry revenue is expected to grow at an annualised 1.0% over the five years through 2020-21, to $28.1... Learn More
Labor Costs for 2021: $16.0B
The University and Other Higher Education industry has undergone significant review and reform over the past decade. In 2012, the Federal Government removed enrolment caps for universities and introduced a demand-driven system, enabling industry operators to offer a higher number of places for most degrees. The uncapping of Commonwealth-supported places under the Commonwealth Grants Scheme has significantly increased public expenditure on universities. In 2017, government funding for bachelor courses was capped at 2017 levels, with this cap remaining in place for the 2018 and 2019 calendar years, limiting growth in funding over the past two years. Federal Government funding is... Learn More
Labor Costs for 2021: $15.9B
The Police and Firefighting Services industry is vital to Australia's security and emergency response capabilities. Each state and territory is predominantly responsible for operating its own police and firefighting services. The role of firefighting organisations includes responding to fires, investigating fires, developing safety codes, responding to road accidents, managing hazardous materials and educating the community about fire safety. The Federal Government oversees the Australian Federal Police (AFP), which enforces national laws and provides community policing services in the Australian Capital Territory.
Major sporting, cultural or political events often require additional police services. One-off natural disasters, such as cyclones, catastrophic flooding and... Learn More
Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Least Risky Industries in Australia in 2021
VIEW ARTICLEBased on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Biggest Industries by Employment in Australia in 2021
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