This release reflects data updated in Labour Account Australia, June quarter 2023. There will be a future update in early 2024 based on data from Jobs in Australia, 2020-21 (to be released on 12 December 2023). Data based on Characteristics of Employment will remain the same for 2023 as the labour hire module of the survey is only conducted in even years.
Labour hire workers and the Labour supply service industry
Labour hire work is characterised by a third-party arrangement, where there is:
- an employment relationship between an individual employee and a labour hire firm, and
- a commercial arrangement between the labour hire firm and another business for the supply of the individual employee's labour, for a fee.
The labour hire firm then pays the individual employee (the labour hire worker) their wage or salary. Labour hire workers are employees of a labour hire firm, rather than the firm that they are providing their labour to.
The multi-party nature of labour hire work makes it one of the more challenging arrangements to produce statistics on, compared with the more common employer-employee relationships and self-employment.
Businesses that provide labour hire services, and their employees, are classified to the ANZSIC 4-digit industry class of 'Labour supply services' (ANZSIC 7212). Labour within businesses in this industry is different to most businesses, given the main activity is the provision of labour as a service to other businesses, rather than the use of labour within the business to produce goods and/or services.