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. Professional Services in Australia

Labor Costs for 2020: $61.3B

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 have driven the subdivision's growth. Earlier in the five-year period, accounting and management consultants have benefited from downstream businesses looking to improve efficiencies as increased globalisation have constrained profit margins. Overall, the subdivision revenue is expected to grow at an annualised 2.1% over the past five years through 2019-20 to $179.3 billion. However, the subdivision's... Learn More

3. 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

4. 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

5. Government Schools in Australia

Labor Costs for 2020: $31.7B

The Government Schools industry has grown over the past five years due to rising student numbers and government funding. The industry receives most of its income from the federal, state and territory governments, with state and territory funding providing approximately 80% of revenue. Political debate surrounding school funding has introduced volatility to industry revenue over the past five years. However, student enrolment numbers have increased over the period, driving growth in revenue. Overall, industry revenue is forecast to rise at an annualised 1.8% over the five years through 2024-25, to a total of $52.7 billion. This includes an expected increase... Learn More

6. Finance in Australia

Labor Costs for 2020: $30.3B

The Finance subdivision's operating environment has been challenging over the past five years, due to falling interest rates and declining private capital expenditure. Residential property prices have risen over the period, particularly over the two years through 2016-17. However, declines in the cash have 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 1.4% over the five years through 2019-20, to $195.7 billion. Subdivision revenue is anticipated to fall by 4.6% in 2019-20, due to the COVID-19 outbreak and five cash rate... Learn More

7. 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

8. National and Regional Commercial Banks in Australia

Labor Costs for 2020: $23.7B

The National and Regional Commercial Banks industry has recorded a decline in industry revenue over the past five years as the cash rate has fallen to record lows. Consistent cash rate cuts across 2015 and 2016, followed by five cash rate cuts since June 2019 have led to a decline in industry revenue despite growth in lending volumes. Banks have increased interest rates on various mortgage and business lending products out-of-cycle over the period due to higher capital adequacy requirements and tighter lending standards over the past two years in an effort to maintain margins. However, this trend has been... Learn More

9. 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

10. 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