September | Hourly Work Index
Australia
The "Hourly Work Index" by Deputy provides a detailed analysis of the state of hourly work across various industries in Australia. Deputy's unique data on timesheets, hours worked, average shift lengths, and other relevant metrics provides real-time insights into the jobs market, the economy, industry challenges, business confidence and trends impacting demographics within the hourly / shift worker community.
👩🏭 Manufacturing
Avg Shifts Worked | MoM Shifts Worked | Avg Hours worked | MoM Hours Worked | Average Shift Length |
🔽 25.52 | 🔽 -2.95 % | 218.2 🔼 | 🔽 -2.42 % | 8.11 🔼 |
New Hires | Employee Turnover | Predictable Scheduling | Avg Shift Pay | Avg Hourly Pay |
24.10% 🔼 | 10.61% 🔼 | 2.56 🔼 | $258.44 🔼 | 🔽 33.15 |
In September, the Manufacturing sector is characterised by a period of recalibration, with fewer shifts worked but longer hours and a resumption of hiring. Employers are adjusting shift lengths to manage fluctuations in demand and offering longer shifts to improve workforce retention. Overall, this reflects a sector in transition, striving to find the right balance between operational efficiency and employee satisfaction.
- Reduced shifts: The number of shifts worked decreased by 2.95% compared to August, with total hours worked dropping by 2.42%. However, the average shift length in September increased. This suggests that while fewer shifts were scheduled, the duration of each shift was extended, potentially in response to fluctuating demand or operational challenges. Employers may be focusing on maximising productivity during the shifts that do occur.
- Hiring resumed: Following significant declines in August — where new hires dropped by 96% — September showed signs of recovery with a 24% increase in new hires. This suggests a cautious resumption of recruitment activity as businesses adjust to evolving conditions.
- Increased earnings: Despite fewer shifts worked in September, workers earned more per shift due to extended working hours. This suggests that employers, in response to labour market pressures, are offering longer shifts to retain staff and reduce turnover.
🕓 Economic/Social Impact
Labour supply shortage:
Despite an increase in hiring activity in September, labour supply remains the most acute pressure on Australian manufacturing today. Job vacancies have reached record highs, while wage growth is at a 16-year peak. A broader trend in the sector indicates a shift away from smaller-scale manufacturing towards growth in higher value-adding sub-sectors like food and metal products. This industry shift might prompt employers to become increasingly selective with their resources, prioritising skilled talent and offering competitive remuneration packages to retain essential workers.
Supply chain disruptions:
This month of transition, marked by an influx of new hires and a drop in the average number of shifts worked, may lead to a decline in the sector’s production capacity. This presents unique challenges for onboarding new talent while trying to maintain operational efficiency. As businesses adjust to fluctuating demand, this period of operational uncertainty may further strain supply chains.
💬 Quote/Commentary
As businesses grapple with talent retention, competitive wages, and evolving market demands, the Manufacturing sector faces a host of challenges that extend beyond the factory floor. These hurdles can profoundly affect economic growth, workforce stability, and the sector’s overall resilience. Monthly fluctuations in manufacturing operations and capacity can cause ripple effects throughout the economy, directly affecting supply chains and industries like retail and logistics. This interconnectedness highlights the importance of a strong Manufacturing sector in ensuring economic stability. While the federal government has budget allocated to accelerating Manufacturing through initiatives like the Future Made in Australia Act, employers need to be adaptable to market changes so they can better support the shift workers that form the backbone of this sector. Organisations that are prepared for these changes will be better positioned to retain skilled workers which is essential for long-term success in the tight labour market.
About Deputy
Deputy is the global people platform for hourly work. Its intuitive software strengthens employer-employee connections, streamlines compliance obligations, and revolutionises how hourly workers and businesses operate together, creating thriving workplaces.
Over 330,000 workplaces use Deputy to create better work-life experiences for 1.4 million scheduled workers globally. Visit Deputy, or find us on Twitter, Facebook, the App Store, or Google Play for more information.
The Data
The “Hourly Work Index” is produced by Deputy, the global people platform for hourly work, utilising anonymised and aggregated Deputy customer and user data. This data has been normalised to account for seasonality and demand of workforce fluctuations throughout the week (e.g. weekday vs. weekends). This report analyses the shifts and hours worked of 717 790 hourly workers and the scheduling activitiesof 196,540 workplaces in Australia.
