Labour costs in business services in Australia stood at 460.22 billion AUD in 2023. The year-on-year growth rate from 2022 to 2023 was 2.3%, reflecting a slight deceleration from the previous years. Historical analysis from 2013 to 2023 shows an overall increasing trend with consistent year-on-year growth rates ranging between 2.08% and 4.55%. Despite minor fluctuations, the compound annual growth rate (CAGR) over the last five years has been 2.39%.
Future projections from 2024 to 2028 anticipate a continued rise in labour costs, though at a slower pace, with the forecasted 5-year CAGR at 1.59% and an overall growth rate of 8.2% during that period. Key trends to watch for in the future include:
- Impact of automation and AI on the labour market
- Shifts in demand for high-skill versus low-skill services
- Inflationary pressures and economic policies
- Global economic conditions and their impact on Australia's service industry
