Australia Human Capital Overview

Australia Human Capital Overview

Australia Human Capital Overview

Australia, the Land Down Under, is known for its hospitality, beautiful beaches, and high standard of living. The country is naturally beautiful and has many places to explore.

Larger cities offer a strong pool of local talent with considerable technical skills. If you are looking for a first-world country in which to grow your business, Australia should be on your radar.

English is the most widely spoken language among Australians, and the country has a strong base of expats who currently make up almost 30% of its population. In addition, the country has a history of offering excellent social benefits and high salaries to its populace. Here are some of the facts you should know about human capital in Australia.

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Tech Graduates and Workforce

Australia is known for being one of the most technologically savvy countries in the world. It has one of the highest rates of internet access in any country. Scientists and researchers from Australia have been responsible for many breakthroughs and technological developments worldwide.

  • Highly Educated: Approximately 62% of the Australian working population has obtained a certificate, diploma, or degree.
  • Service-Driven: Over 75% of the population works in the service industry, which includes tourism, finance, engineering, education, and research.
  • Multicultural: There are a large number of expatriates living in Australia, contributing to its reputation as a global melting pot.
  • High Living Standards: The country is known for its high wages compared to the rest of the world. In addition, there are a variety of social protection programs available to residents that give it a reputation for having a high quality of life.

Key Sectors for Local Activity

Local economic activity in Australia is driven by the service industry.

  • Tourism: Almost 7 million people visit Australia annually. It is known for its beautiful beaches and widely varying landscape, including deserts and rainforests.
  • Healthcare: Australia has the second-best ranked healthcare system in the world. It is regarded as one of the best places to conduct clinical trials and medical investigations.
  • Finance: The World Bank ranked Australia as the fastest place to start a business in 2015. It is known as a global commercial hub. The finance sector alone makes up over 11% of the Australian GDP.

Key Sectors for Outsourcing

Like many other countries, Australia has seen a significant rise in freelancers and contractors. These individuals primarily offer IT, hospitality, and finance-related services.

In contrast, business process outsourcing companies do not form a significant part of the Australian economy. Due to the country’s reputation for high wages, outsourcing activities are more likely to be focused on overseas locations that are able to offer a cheaper labor force.

English Speakers

Over 80% of the Australian population speaks English as their native language. Outside of English, there are small populations that communicate using languages indigenous to Australia, such as Tasmanian or Australian Aboriginal.

Minority languages include Mandarin Chinese, Italian, Greek, Cantonese, and Arabic.

Average Wages

The minimum wage in Australia is currently AUD $20.33 per hour. This rate is equivalent to approximately USD $14.50. The current average yearly salary is AUD $67,860, or USD $48,637. Salaries vary significantly by industry, location, and position held.

A sampling of average salaries includes:

  • Software Architect: AUD $116,942 / USD $83,815
  • Lawyer: AUD $124,800 / USD $89,447
  • Sales Manager: AUD $97,199 / USD $69,665
  • Administrative Assistant: AUD $60,300 / USD $43,218

Salaries are comparable with those in countries such as the United States, the United Kingdom, and those throughout Europe.

Prominent Cities for Business

Australia is roughly the size of the United States. However, while its size is significant, a large percentage of the land is uninhabited. It is possible to drive for several hours through Australia before reaching a large city. Significant work hubs include:

  • Melbourne: Australia’s second-largest city is known as the cultural capital. It has a large number of museums, hosts many festivals and offers lots of restaurants. The employment market is large and concentrated in the financial, aviation, and technology industries.
  • Sydney: Sydney is the largest city in Australia. It is known for its business district and beautiful beaches, but these do come with a high cost of living. Industries that flourish in Sydney include financial services and communications technology.
  • Perth: Perth is known for its beautiful beaches and year-round warm weather. It has a fast-growing economy due to its proximity to Asia, with a particular focus on the tech industry.

Turnover Rates

Australia has relatively low turnover rates. Approximately 70% of the population stays in their current position for at least two years before looking for another role. Rates vary significantly by sector. Employees in lower-paid industries, such as hospitality, are more likely to change jobs often, while those in professional industries stay longer. 

The Australian unemployment rate generally hovers between 4% and 5%.

Is Australia Right for Your Business?

SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization.

Contact us today to learn more about how you can expand your business in Australia.

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