Here are our top-5 WA HR news stories for the week. Also read out in-depth column on WA’s economy and people impact.
- Payroll Jobs Surge in WA: The Australian Bureau of Statistics reported a 1.4% increase in payroll jobs for Western Australia in March 2025, outpacing national growth of 0.7%. Key sectors like education and training saw boosts, signalling opportunities for SMEs to ramp up hiring amid improving economic conditions and reduced ‘unknowns’ in employer data. https://www.abs.gov.au/statistics/labour/jobs/payroll-jobs/week-ending-15-march-2025
- Job Mobility Rates Decline: Job mobility fell to 7.7% in 2025, with younger workers (15-24 years) more likely to switch roles, entering sectors like health care. For WA SMEs, this suggests workforce stability but talent attraction challenges; prioritise retention through career development to counter retrenchment rises to 1.9%. https://www.abs.gov.au/statistics/labour/jobs/job-mobility/feb-2025
- Mining Sector Alarms Over Pay Laws: WA’s mining industry expresses concern over ‘same job, same pay’ laws, citing insufficient state representation at upcoming economic reform talks. Pilbara operations fear higher labor costs; SMEs in supply chains should review contracts and advocate for exemptions to mitigate potential payroll impacts. https://thewest.com.au/business/mining/miners-target-same-job-same-pay-exemption-amid-wa-roundtable-snub-c-19460236
- Psychosocial Hazards Shift to Safety Focus: 2025 employment law updates classify psychosocial hazards as health and safety issues, not just HR. WA SMEs must prepare for Right to Disconnect extensions by August, integrating mental health protocols to avoid penalties and foster safer workplaces amid evolving regulations. http://people2people.com.au/market-report-launch
- Unions Urge AI Agreements in Workplaces: Recent calls from Ai Group criticise union demands for mandatory AI consultation clauses in enterprise agreements, as of July 28, 2025. WA SMEs adopting HR tech for efficiency must navigate potential bargaining hurdles to avoid disputes and ensure smooth implementation. https://www.hcamag.com/au/specialisation/hr-technology/ai-group-critical-of- union-push-for-ai-agreements/544121
The WA Economic Paradox: Thriving but Under Pressure
The current economic environment in Western Australia is defined by a distinct paradox. High-level economic data indicates a thriving state, leading the nation in key indicators like business investment and retail spending. The state’s domestic economy is resilient, with strong growth in demand and employment, and a State budget forecasting continued surpluses. However, this macroeconomic strength is creating intense pressure at the micro level, particularly for SMEs.
This paradox is not a contradiction but a direct cause-and-effect relationship. The very factors driving the boom—major projects, strong investment, and rapid population growth—are the primary sources of the strain felt by smaller businesses. This economic activity creates immense demand for labour, with Jobs and Skills Australia identifying 62 professions in WA with long-term, persistent skills shortages in critical sectors like construction, healthcare, hospitality, and education. While WA’s population growth is the highest in the country, it is still insufficient to meet the scale of this demand.
This imbalance between labour demand and supply creates a fiercely competitive environment. SMEs find themselves in a difficult position, competing for the same limited pool of talent against large resource and construction companies that have a greater capacity to absorb escalating wage costs. This competition drives up wages and operational costs across the board. Simultaneously, the influx of people and investment increases demand for housing and services, further fuelling inflation and contributing to the cost-of-living pressures that the CCIWA has identified as a key factor in the declining confidence of regional businesses. SMEs are therefore caught in the crossfire of the state’s success, facing pressures on both their largest expense (labour) and their general operational costs.
The government’s primary response to this challenge is to leverage the skilled migration program. The Department of Home Affairs has announced priority processing for employer-sponsored visas in critical sectors and has indexed the income thresholds for these visas upwards to ensure migrant wages keep pace with those of Australian workers. For example, the Temporary Skilled Migration Income Threshold (TSMIT) was increased to $76,515 from 1 July 2025. This presents both an opportunity and a new challenge for SMEs. While it opens an alternative channel for sourcing desperately needed talent, it is not a simple or low-cost fix. The process of sponsoring a migrant worker is complex and requires significant administrative effort, often necessitating the engagement of migration agents. Furthermore, the requirement to meet these higher salary benchmarks adds another layer of cost pressure, reinforcing the central challenge of the economic paradox.
For SMEs, the strategic imperative is clear: they must shift from a simple “hiring” mindset to a more sophisticated strategy focused on talent attraction, development, and, crucially, retention.
