1. Overall Employment Landscape
In August2021, Australias total employed population was around 13.2million, representing an employmenttopopulation ratio of 62%. The labour market continued its recovery from the COVID19 pandemic, with a net gain of 242000 jobs compared with the same month in 2020.
Key indicators
| Indicator | August2021 | Change YoY |
|---|---|---|
| Employmenttopopulation ratio | 62% | +1.2pp |
| Unemployment rate (U3) | 4.6% | 0.7pp |
| Underemployment (U6) | 7.1% | 1.3pp |
| Average weekly earnings (fulltime) | AUD1,734 | +3.0% |
2. Sectoral Distribution
Employment is heavily concentrated in three sectors:
- Health care and social assistance 13% of all jobs, driven by an ageing population and pandemicrelated demand.
- Professional, scientific and technical services 12% of jobs, reflecting growth in consulting, IT, and engineering.
- Retail trade 10% of jobs, though employment in this sector remains below prepandemic levels due to online shopping trends.
Emerging industries
Renewable energy, advanced manufacturing, and cybersecurity each posted doubledigit employment growth rates, signalling a structural shift toward a greener and more digital economy.
3. Gender and Age Composition
In August2021, women accounted for 50.2% of the workforce, a slight increase from 49.8% in 2020. The participation gap narrowed particularly among mothers of young children, reflecting flexible work arrangements introduced during the pandemic.
Age breakdown
| Age group | Share of employment | Notes |
|---|---|---|
| 1524years | 13% | Higher parttime and casual rates |
| 2544years | 49% | Prime working age, most growth in professional services |
| 4564years | 35% | Strong presence in health, education and skilled trades |
| 65+years | 3% | Increasing due to phased retirement and parttime roles |
4. Employment Type and Hours
Casual employment remained high at 26% of the total workforce, down from 28% in 2020 but still above the preCOVID level of 23%. The trend reflects ongoing demand for flexibility in sectors such as hospitality, aged care, and tourism.
Average weekly hours worked by fulltime employees fell slightly to 38.3hours, while parttime workers averaged 21.7hours.
Workfromhome (WFH) patterns
Approximately 28% of fulltime employees reported regular WFH arrangements, a figure that stabilised after a sharp rise in 2020. Industries with the highest WFH rates were:
- Information technology 57%
- Professional services 46%
- Finance and insurance 40%
5. Regional Differences
Employment growth was uneven across the nation. The Australian Capital Territory (ACT) and Queensland recorded the strongest increases (1.8% and 1.5% respectively), while Tasmania and the Northern Territory showed modest growth (<0.5%).
Urban vs. regional
Urban centres (Sydney, Melbourne, Brisbane) continued to dominate job numbers, yet regional hubs such as Geelong, Sunshine Coast, and Adelaides suburbs experienced faster relative gains, driven by offshoring of manufacturing and digital service hubs.
6. Wage Trends and Pay Gaps
Average weekly earnings for fulltime employees rose 3% yearonyear, with the largest increases seen in health care (+4.2%) and information technology (+4.8%).
Gender pay gap
The gender pay gap narrowed to 13% (compared with 14% in 2020), reflecting higher wage growth for women in health, education, and community services. However, gaps remain larger in senior leadership and STEM occupations.
Minimum wage
From 1 July 2021, the national minimum wage increased to AUD20.33 per hour, representing a 2.5% rise. This uplift contributed to a modest reduction in wage compression in lowpaid sectors.
7. Skills Shortages and Labour Supply Constraints
Employer surveys highlighted persistent shortages in the following occupations:
- Registered nurses and allied health professionals
- Skilled tradespeople electricians, plumbers, carpenters
- IT specialists cybersecurity analysts, cloud engineers
- Agricultural labour horticulture and livestock handlers
To address these gaps, the government expanded its skilled migration program and increased funding for vocational education and training (VET) pathways.
8. Outlook Beyond 2021
Projections from the Job Outlook Survey suggest that employment will continue to recover, with an anticipated net gain of 0.6% per quarter through 2023. Key drivers include:
- Continued digital transformation across traditional industries
- Investment in renewable energy infrastructure
- Population growth, especially in major cities
- Policy support for jobcreation programmes in regional Australia
Potential risks remain, including global supplychain disruptions, inflationary pressures affecting wage growth, and the possibility of new COVID19 variants impacting labour market confidence.
