Home topics news via pexels News News Advertised salaries up 3.8%, but SMEs can’t find workers Yajush Gupta January 22, 2026 Advertised salaries grew year-over-year in December but applications per vacancy fell. Dr Blair Chapman warns that wage gains fail to match accelerating inflation What’s happening : The SEEK Advertised Salary Index rose 3.8% year-over-year in December 2025, the fastest growth since September 2024, with consistent monthly increases of 0.3% throughout the year. Why this matters: Rising advertised salaries may appear positive, but they mask a deeper labour market contraction and purchasing power erosion. Inflation accelerated to 3.4% by November, outpacing wage growth and eroding real household income. In December 2025, Australia’s advertised salary growth reached its fastest pace in months. The SEEK Advertised Salary Index climbed 3.8% year-over-year, marking the strongest annual increase since September 2024. On the surface, this looks reassuring for Australian workers considering salary negotiations and job transitions in the new year. Dr Blair Chapman, SEEK Senior Economist, offers a reality check. “Advertised salary growth was remarkably consistent in 2025. Increases of around 0.3% each month over the second half of the year was enough to see the annual rate of growth reach 3.8% in December, the fastest annual growth since September 2024,” Chapman explains. But salary growth alone tells an incomplete story. “Despite faster growth in advertised salaries, many households likely felt a cost-of-living squeeze in the second half of 2025. Consumer prices also accelerated over this period, with annual inflation rising from 1.9% in