Underemployment in Australia is on the rise, despite a fluctuating but generally lower unemployment rate over recent decades. The latest data from Deputy's Hourly Work Index sheds light on this concerning trend, particularly within the shift work sectors across the nation.

The report reveals intriguing patterns in earnings across different generations within several key shift work industries.

Healthcare sector

Generation X stands out as the highest earners in this sector, with an average pay per shift of $245.63, marking a 2.9% increase month-over-month (MoM). Baby Boomers, however, lead in hourly pay at $38.80, up 1.20% MoM. Millennials earn $241.66 per shift, up 2.57% MoM, with an average hourly rate of $36.59 (up 2.57% MoM). Conversely, Generation Z lags significantly behind, earning an average of $196.91 per shift (up 2.47% MoM) and an average hourly pay of $31.51 (up 2.74% MoM).

Hospitality sector

In hospitality, Generation X again leads with the highest average pay per shift at $193.96, up 2.51% MoM. Baby Boomers top the hourly pay chart with $32.44, a 3.43% increase MoM. Millennials earn $183.38 per shift (up 3.5% MoM) and an hourly rate of $27.80 (up 3.61% MoM). Generation Z’s earnings lag behind with an average pay per shift of $159.25 (up 3.32% MoM) and an hourly rate of $26.94 (up 2.99% MoM).

Retail sector

Retail workers from Generation X earn the most per shift ($201.15, up 3.75% MoM) and hourly ($30.31, up 3.62% MoM). Baby Boomers have an average shift pay of $198.61 (up 2.22% MoM) and an hourly rate of $30.23 (up 2.42% MoM). Millennials earn $199.71 per shift (up 1.88% MoM) and $29.76 per hour (up 1.82% MoM). Generation Z’s earnings remain significantly lower, with an average shift pay of $161.17 (up 3.08% MoM) and an hourly rate of $26.91 (up 2.99% MoM).

Services sector

Generation X leads in the services sector with an average pay per shift of $203.87 (up 0.50% MoM). Baby Boomers earn the most per hour at $33.87 (up 3.49% MoM). Millennials receive an average shift pay of $200.27 (up 1.81% MoM) and an hourly rate of $32.62 (up 2.83% MoM). Generation Z’s average pay per shift is $176.87 (up 2.55% MoM) and their hourly rate is $29.85 (up 2.99% MoM).

June saw a significant decrease in the number of hours worked across various industries. For example, Critical & Emergency Services experienced a 12% drop in hours worked, while average timesheet pay fell by 1.8% MoM. Hospital workers saw an increase in average hourly pay by 5.3%, but the number of new employees joining the sector plummeted by 78% compared to May.

In the bar industry, the number of hours worked decreased by 4.4%, although average hourly pay rose by 3.24% MoM. Gym staff experienced an 18% reduction in nighttime work hours as people opted for daytime exercise.

The general trend across major shift work sectors in June was a rise in predictable scheduling and average shift pay, but a decline in the average number of shifts and hours worked. This reflects a broader issue of underemployment affecting the industry.

Broader implications: Underemployment and turnover

The data suggests that workers in all major shift work sectors are experiencing fewer shifts and shorter shift durations. This decrease in shift work correlates with broader economic conditions, as businesses aim to cut costs and reduce labour expenses.

The reduction in hours worked has led to increased turnover rates across various industries, with more workers leaving than joining. This points to a volatile job market where dissatisfaction with work conditions, coupled with inadequate earnings, is driving higher turnover.

Despite an overall increase in wages in June, the generational pay gap remains pronounced. Generation Z, in particular, faces significant challenges, with markedly lower earnings compared to Baby Boomers, Generation X, and Millennials. In the hospitality sector, for instance, Generation Z workers earn an average hourly rate of $26.94, compared to $32.44 for Baby Boomers. This pay disparity highlights the economic pressures on younger workers who struggle to make ends meet.

With the reduction in shift work hours, there is a growing trend of poly-employment among shift workers. Many are taking on multiple jobs across different industries to compensate for reduced hours and inadequate earnings. This trend underscores the need for more stable and predictable work opportunities.

As businesses navigate these challenges, a focus on improving job stability, fair compensation, and consistent work opportunities will be crucial in supporting a more resilient and equitable workforce.