Industries with the Highest Labor Costs in Australia in 2022

1. State Government Administration in Australia

Labor Costs for 2022: $140.0B

The State Government Administration industry is made up of the eight state and territory governments across Australia. Under the Australian Constitution, state and territory governments are responsible for everything that is not a Federal Government responsibility. This includes, but is not limited to, schools, hospitals, roads and railways. This report includes all actions that state and territory governments undertake. As a result, it double counts key information with other industries in Australia. For example, teachers employed in government schools in Australia are included as employees in both the State Government Administration industry and the Government Schools industry. State and territory... Learn More

2. Health Services in Australia

Labor Costs for 2022: $86.9B

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 (GPs), clinical specialists and dentists also represent significant revenue streams for the subdivision. Australia's growing and ageing population has supported demand for health services over the past five years. However, the COVID-19 pandemic has limited subdivision expansion, as health services have redirected resources to contain the virus. Consequently, subdivision revenue is expected to grow at an annualised 2.2% over the five years through 2022-23, to $197.8 billion. The industry's growth... Learn More

3. Public General Hospitals in Australia

Labor Costs for 2022: $51.9B

The Public General Hospitals industry has grown over the past five years, supported in part by increased government funding. 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% of industry funding in 2022-23. Public hospitals services funding under the National Health Reform Agreement is expected to reach $27.3 billion in the current year, having steadily increased over the past five years. At the same time, demand for public general hospitals has risen over the past five years, primarily due to Australia's ageing population... Learn More

4. Professional Services in Australia

Labor Costs for 2022: $49.7B

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. Over the past five years, greater business profit, rising capital expenditure by the public sector and mostly positive business confidence have supported subdivision demand. However, the COVID-19 pandemic has disrupted several industries in the Professional Services subdivision, weighing on the subdivision's performance. In particular, demand for engineering consulting, architectural services, and surveying and mapping services have been constrained over the past three years during the COVID-19... Learn More

5. Community Services in Australia

Labor Costs for 2022: $43.8B

Organisations in the Community Services subdivision 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 subdivision are expected to receive $70.4 billion from government funding, donations and private income in 2021-22. Subdivision revenue is expected to increase at an annualised 4.4% over the five years through 2021-22. Favourable demographic trends and ongoing government funding have contributed to revenue growth. COVID-19 has also shaped demand trends... Learn More

6. Government Schools in Australia

Labor Costs for 2022: $32.9B

The Government Schools industry has grown due to rising student numbers and government funding over the past five years. 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 expected to rise at an annualised 0.9% over the five years through 2026-27, to total $54.8 billion. This includes an anticipated increase of 1.4%... Learn More

7. National and Regional Commercial Banks in Australia

Labor Costs for 2022: $31.2B

Revenue for the National and Regional Commercial Banks industry has declined over the past five years as the cash rate has fallen. The cash rate fell to a record low of 0.10% in November 2020. This low rate, combined with loan repayment deferrals during the COVID-19 pandemic, has weighed heavily on industry revenue, despite growth in lending volumes. Banks have increased interest rates on various mortgage and business lending products out-of-cycle at times over the period, due to higher capital adequacy requirements and tighter lending standards in an effort to maintain margins. However, this trend has been more than offset... Learn More

8. Computer System Design Services in Australia

Labor Costs for 2022: $30.8B

The Computer System Design Services industry consists of many 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 client businesses have outsourced non-essential systems operations, and as computers and IT systems have required regular upgrades and enhancements. Furthermore, greater internet connectivity has driven industry growth over the period, and financial services providers such as banks and insurers have remained the industry's largest clients.

Due to strong demand, industry revenue is anticipated to increase at an annualised 5.1% over the five years... Learn More

9. Finance in Australia

Labor Costs for 2022: $30.2B

The Finance subdivision's operating environment has been challenging over the past five years, due to falling interest rates. Residential property prices have risen over the period, supporting demand for mortgages. However, volatile business confidence over the period has limited growth in capital expenditure from the private sector and overall demand from commercial clients. Overall, subdivision revenue is expected to decline at an annualised 2.4% over the five years through 2021-22, to $185.1 billion. Subdivision revenue is anticipated to rise by 2.1% in 2021-22, as most operators have wound down deferrals on loan repayments that were offered at the height of... Learn More

10. Temporary Staff Services in Australia

Labor Costs for 2022: $25.9B

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. Stable demand from several downstream markets has benefited industry firms over the past five years, including professional services and healthcare sectors.

Industry revenue increased strongly over the two years through 2018-19, before declining slightly in 2019-20, and... Learn More