The Australian job market is showing signs of improvement, with job ads on the rise for the first time in over a year. According to SEEK's August 2026 Employment Report, job ads increased by 0.5 per cent nationwide from July, breaking a 12-month streak of decline. The annual rate of decline has also eased to 4.5 per cent, down from 5.2 per cent in the previous two months.
At the same time, SEEK's Advertised Salary Index shows pay packets are still climbing. Advertised salaries grew 4.2 per cent year on year in August, though monthly growth softened slightly to 0.3 per cent after accelerating in June and July.
Job ads turn a corner
SEEK Chief Economist Dr Blair Chapman said the rise was broad based.
"For the first time since mid-2025, demand for workers rose modestly, with broad-based growth in Victoria the major contributor," Dr Chapman said. "The large hiring industries of Trades & Services, Healthcare & Medical and Manufacturing, Transport & Logistics all posted solid monthly gains nationally, but it was the 3.6% jump in Hospitality & Tourism ad volumes that really moved the dial."
He noted the Hospitality & Tourism rise stood out because it came on top of the usual seasonal pattern.
"As our data is seasonally adjusted, the significant rise in Hospitality & Tourism demonstrates unexpectedly high demand, over and above what we would expect at this time of year as venues look toward the warmer months," Dr Chapman said.
Applications per ad, which are reported with a one month lag and reflect July data, rose 0.4 per cent month on month and remain at peak levels.
"Even as job ads turn around, applications per ad have not fallen. They rose again month-on-month to peak levels, highlighting the continued fierce level of competition for the jobs on offer," Dr Chapman said.
Salaries keep climbing
Dr Chapman said salary growth has held up despite a softer labour market overall.
"Annual advertised salary growth remained steady at 4.2% year-on-year in August, outpacing headline inflation of 3.5% in July," Dr Chapman said. "Advertised salary growth has been relatively robust over the past year, even though the unemployment and underemployment rates have been trending up, and employment growth has been slowing."
He also pointed to a shift in worker behaviour.
"Despite the growth in advertised salaries, the job switching rate declined between 2025 and 2026, suggesting that workers may be hesitant to change jobs in the current environment," Dr Chapman said.
Where demand is strongest
Victoria led the states, with job ad volumes up 1.1 per cent from July, the sharpest monthly growth the state has recorded in over four years. The rise was broad based, with gains in Hospitality & Tourism (4.5 per cent), Trades & Services (3.2 per cent) and Manufacturing, Transport & Logistics (2.1 per cent).
New South Wales rose 0.6 per cent, its largest monthly increase since mid-2022, driven largely by Hospitality & Tourism, where Front Office & Guest Services roles rose 8 per cent and Bar & Beverage Staff rose 6 per cent.
Western Australia was the only state or territory to record annual growth in job ads, up 1.8 per cent year on year, supported by Mining, Resources & Energy (13 per cent) and Manufacturing, Transport & Logistics (11.2 per cent).
Nationally, the Industrial and Construction sectors recorded the strongest annual growth. Engineering roles rose 14.3 per cent year on year, followed by Mining, Resources & Energy at 11.6 per cent and Construction at 10.7 per cent.
AI skills in high demand
References to AI skills appeared in 2.3 per cent of job ads nationally, rising to 3 per cent in New South Wales. Job ads mentioning AI related skills rose 3.9 per cent month on month and were 66.2 per cent higher than a year earlier, though SEEK noted this was slower than the 88 per cent annual growth recorded in January.
Agentic AI skills were among the fastest growing, up 185.3 per cent year on year, while AI Ethics & Governance skills rose 153.6 per cent.
SEEK also found job ads for roles with a high automation exposure score fell 12.3 per cent year on year, a steeper decline than roles with a low automation score, which fell 1.8 per cent. Occupations with low automation scores include roles such as bakers, travel attendants and florists, which SEEK said tend to involve manual or technical tasks not currently easy to automate.
What it means for hiring
The combined picture from SEEK's two reports is a labour market that is turning, but not loosening. More roles are opening, particularly in hospitality, trades and construction related industries, and salary growth has held above inflation for the past year. At the same time, applications per ad remain at peak levels, meaning candidates still have plenty of competing options to apply for.
For business owners hiring this quarter, that suggests roles may attract strong interest, but pay expectations are unlikely to soften. If you're recruiting in Victoria, New South Wales or Western Australia, or in hospitality, trades or industrial roles, the data suggests you're hiring into a market with real movement for the first time in over a year.