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 2024
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View a list of the Top 25 industries with the highest labor costsLabor Costs for 2024: $172.5B
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
Labor Costs for 2024: $110.8B
The Health Services subdivision covers a range of health services and facilities. General hospitals are the subdivision's largest revenue driver, accounting for over half of Australia's health services revenue. General practitioners (GPs), clinical specialists and dentists also represent significant revenue streams for the subdivision. While Australia's growing and ageing population has bolstered demand for health services in recent years, the COVID-19 pandemic disrupted subdivision expansion, as health services redirected resources to contain the virus.
Overall, subdivision revenue is expected to edge up by an annualised 1.2% over the five years to 2023-24 to $202.4 billion. This soft growth rate reflects the... Learn More
Labor Costs for 2024: $58.7B
Growth in the Public General Hospitals industry has been 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 2023-24. Public hospital services funding under the National Health Reform Agreement is expected to reach $28.5 billion in 2023-24, having steadily risen over the past decade. There has been a simultaneous expansion in the need for public general hospitals, driven by Australia's ageing population and the rising incidence of chronic illness among adults.
At the... Learn More
Labor Costs for 2024: $51.8B
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 like children and the elderly. Favourable demographic trends and ongoing government funding have supported the subdivision's performance in recent years.
At the same time, the COVID-19 pandemic has shaped the subdivision's operating backdrop, with many Australians experiencing social and economic disadvantages, housing insecurity and mental health challenges arising from the prolonged pandemic. A series of high-profile cases of abuse, neglect and negligence among prominent... Learn More
Labor Costs for 2024: $42.1B
The Finance sector's operating environment has characterised by record low interest rates and market turbulence over most of the past five years. A strong residential property market supported by housing price growth and high numbers of house transfers have supported the incomes of many lenders. Yet, volatile business confidence and inflationary pressures have limited growth in capital expenditure from the private sector and overall demand from commercial clients. Competition from neobanks and other fintech disruptors has spurred some larger financial firms to invest in new capabilities in the online space. Overall, sector revenue is expected to decline at an... Learn More
Labor Costs for 2024: $33.5B
Banks are grappling with a transition from years of loose monetary policy to tighter financial conditions. Soaring inflation has prompted an RBA pivot, in the face of surging energy, housing and food prices. The RBA has aggressively hiked the cash rate since May 2022. Prior to this, banks cashed in on high residential housing prices, with low interest rates and government schemes encouraging strong mortgage uptake over the course of the pandemic. APRA also eased the interest rate buffer in 2019, before raising it in 2021. Although a subdued cash rate cut banks' interest incomes, it was more than offset... Learn More
Labor Costs for 2024: $31.5B
The Computer System Design Services industry consists of many businesses that develop and implement information technology services, programming systems and business solutions. Despite the havoc caused by COVID-19 pandemic, the industry has expanded strongly in recent years, as many client businesses have outsourced non-essential systems operations, and as computers and IT systems have required regular upgrades and enhancements. Greater internet connectivity has fuelled industry growth, and financial services providers – including banks and insurers – have remained the industry's largest clients.
In response to robust demand, industry-wide revenue has been growing at an annualised 3.5% over the past five years and... Learn More
Labor Costs for 2024: $28.1B
The Consumer Goods Retailing subdivision has faced an unpredictable retail landscape. Most notably, the COVID-19 pandemic has triggered vast economic uncertainties and intermittent trading restrictions. Yet, these challenging circumstances have also spurred unexpected growth. Amid travel bans and closed eateries, consumers have shifted their expenditure from hospitality and travel to retail consumer goods. This transition has helped boost our subdivision's revenue at an annualised rate of 2.2% over the past five years, reaching an anticipated $239.0 billion by 2023-24. Still, with COVID-19 restrictions now lifted and consumption patterns rebounding, a 4.7% revenue drop is expected in 2023-24. High inflation and... Learn More
Labor Costs for 2024: $22.4B
Challenging operating conditions have caused significant changes within the University and Other Higher Education industry. Notably, the COVID-19 outbreak prompted a large shift in the industry's demand and delivery methods. Social distancing requirements and operational constraints after the outbreak caused most universities and higher education providers to pivot to online delivery methods, and remote and multimodal learning models have remained in its aftermath. Students are increasingly seeking the convenience of online learning, and these delivery methods also pose benefits to universities. Despite benefits in terms of operational costs and staffing numbers, the COVID-19 outbreak's associated border restrictions meant that international... Learn More
Labor Costs for 2024: $20.7B
The Business Process Outsourcing (BPO) industry provides a variety of back and front office functions to businesses, including call centre operations, IT services, debt collection and recruitment services. Although many companies undertake these tasks in-house, BPO firms can typically perform these processes more efficiently and at a lower cost because of their greater expertise and economies of scale. Outsourcing also allows companies to focus on performing higher value activities. For this reason, downstream businesses have increasingly demanded the industry's services, underpinning industry revenue growth. Industry-wide revenue has been growing over the past five years at an expected annualised 1.6% 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 2024
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 2024
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