Industries with the Highest Labor Costs in Australia in 2020

1. Health Services in Australia

Labor Costs for 2020: $76.1B

The Health Services subdivision includes a range of health services and facilities. General hospitals are the subdivision's largest revenue driver, accounting over half of Australia's health services revenue. General practitioners, clinical specialists and dentists also represent significant revenue streams for the subdivision. Australia's growing and ageing population is expected to generate strong demand for health services over the five years through 2019-20. However, the outbreak of COVID-19 in early 2020 has limited subdivision expansion, as health services have redirected resources to containing the virus. Consequently, subdivision revenue is expected to grow at an annualised 1.4% over the five years through... Learn More

2. Public General Hospitals in Australia

Labor Costs for 2020: $43.8B

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 2019-20. Due to Australia's ageing population and the rising incidence of chronic illness among adults, demand for public general hospitals has surged over the past five years. Industry revenue is expected to increase at an annualised 2.9% over the five years through 2019-20, to $75.2 billion. This includes anticipated revenue growth of 1.7% in the current year.

Australia's ageing... Learn More

3. Community Services in Australia

Labor Costs for 2020: $36.0B

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 earn $56.9 billion in 2019-20 from government funding, donations and private income. Subdivision revenue is expected to increase at an annualised 3.9% over the five years through 2019-20. This trend includes expected growth of 3.9% in the current year. Favourable demographic trends at both ends of the... Learn More

4. Finance in Australia

Labor Costs for 2020: $32.1B

The Finance subdivision has operated in a challenging trading environment over the past five years, with falling interest rates and declining private capital expenditure weighing on its performance. Although residential property prices have risen over the period, especially over the first half of the five-year period, other segments of the economy have lagged behind. This trend is despite the cash rate falling to a historic low of 0.75%. The cash rate's decline has contributed to falling subdivision revenue, as interest revenue derived from lenders' loan portfolios has fallen. As a result, subdivision revenue is expected to decline at an annualised... Learn More

5. Computer System Design Services in Australia

Labor Costs for 2020: $24.8B

The Computer System Design Services industry consists of businesses that develop and implement information technology services, programming systems and business solutions. The industry has expanded steadily 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 projected to increase at an annualised 3.8% over the five years through 2019-20, to reach $58.8 billion. This... Learn More

6. Temporary Staff Services in Australia

Labor Costs for 2020: $21.4B

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 has increased in each of the past five years, although the growth... Learn More

7. Consumer Goods Retailing in Australia

Labor Costs for 2020: $19.9B

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 rise in 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 intensifying competition from online-only retailers, as consumers have become increasingly comfortable with... Learn More

8. University and Other Higher Education in Australia

Labor Costs for 2020: $18.8B

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

9. Business Process Outsourcing in Australia

Labor Costs for 2020: $18.5B

The Business Process Outsourcing (BPO) industry provides a variety of back and front office functions to business, such as call centre operations, IT services, debt collection and recruitment services. Although many companies undertake these tasks in-house, industry firms can typically perform these processes more efficiently and at a lower cost due to their greater expertise and economies of scale. Outsourcing also allows companies to focus on performing higher value activities. Therefore, downstream businesses have increasingly demanded the industry's services, contributing to the industry's steady performance. Overall, industry revenue is expected to rise at an annualised 3.1% over the five years... Learn More

10. Aged Care Residential Services in Australia

Labor Costs for 2020: $15.8B

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 aged-care funding, has supported revenue growth over the period. Industry revenue is expected to rise at an annualised 2.8% over the five years through 2019-20, to $22.6 billion.Revenue growth has occurred against a backdrop of structural reform,... Learn More