Retail and hospitality to recover from sales slump, data reveals
The retail and hospitality sectors are set to bounce back as the festive season kicks off, according to recent data from Employment Hero.
Employment Hero’s recent SmartMatch Employment Report has indicated the retail and hospitality sectors are set to make a comeback after a prolonged subdued period.
Results showed on the tailwind of Black Friday and Cyber Monday sales, the retail and hospitality sectors saw a 2.1 per cent increase in jobs growth, the strongest month-on-month growth of any sector, and the first time they had increased since November 2023.
The data was constructed from verified payroll data from over 1.1 million Australians and 300,000 SMEs globally and showed that Black Friday sales were the pivoting point for retail recovery despite a challenging year.
Employment Hero said retail and hospitality businesses were hoping a busy holiday season would continue to “turn the tide.”
Employment Hero CEO and chief economist Ben Thompson said the resilience shown by Australia’s retail and hospitality sector during a critical year is starting to pay off.
“After a year marked by unprecedented insolvencies and closures, retail and hospitality businesses are gearing up with renewed optimism for their busiest season,” he said.
“Following a record Black Friday, there’s hope that healthy sale figures this holiday period will provide much-needed momentum heading into the new year, but we need to be mindful of broader challenges faced by SMEs.”
Other key findings from the data outlined overall employment growth remained stable at 4.4 per cent year on year, while overall wage growth increased to six per cent.
It was also demonstrated that casual workers were “feeling the pinch”, activity in the property market had surged leaving home owners feeling under pressure, wage growth was stagnant and Queensland dominated as the state for increased job growth.
Thompson said the November employment stats highlighted the complexities of Australia’s job market beyond what the standard national indicators might have suggested.
Despite positivity being shown in regard to the retail and hospitality sectors there was still much room for improvement, according to Thompson.
“Long-term challenges like shrinking hours for casuals in our most critical sectors, or inconsistent wage growth, can’t be ignored. This comes amidst a tight job market where nationally, candidates far outweigh job openings,” he said.
“Job seekers are being pushed to ‘up’ their game to succeed in a competitive market, and I’d advise employers to do the same – adapting to volatile conductions and strategizing on how to remain competitive is crucial for what could be another tough year for business in 2025.”
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