Australia’s employment market is showing tentative signs of stabilisation after years of decline, with job advertisement volumes rising for two consecutive months for the first time since 2022, according to SEEK’s latest Employment Report for May 2025.
The data reveals a complex picture of an employment market in transition, where job opportunities are slowly recovering while salary growth moderates from previous highs.
Job market stabilisation
Job advertisement volumes declined by just 0.3% month-on-month in May, representing what SEEK describes as a relatively stable period compared to recent months. More significantly, the annual decline of 5.6% year-on-year marks the slowest rate of decline in over two years.
“Looking at the trend data, ad volumes have now risen for the past two months, marking the first rise in three years,” said Dr Blair Chapman, SEEK Senior Economist. “Regardless, our data points to a slowdown in the decline the market has been experiencing since mid-2022.”
The stabilization comes as competition for available positions intensifies. Applications per job advertisement rose 1.2% month-on-month and have grown 4.6% over the past quarter, reaching near-record levels.
“While ad volumes are stabilizing in their decline, candidate appetite for the roles available continues to grow to near-record levels,” Chapman noted.
Regional variations paint mixed picture
The national trends mask significant regional variations across Australia. Three states recorded growth in May, led by South Australia with a 0.5% increase, followed by New South Wales and Victoria, both recording 0.4% growth.
South Australia stands out as the only state or territory where job ad volumes have grown year-on-year, with a notable 6.1% increase driven by increased demand for workers in the Industrial and Construction sectors. This marks the state’s third consecutive month of steady growth.
Queensland, however, saw a 0.8% decline in ad volumes, which drove the national decline for May. This represents what SEEK characterizes as a “recalibration” following greater fluctuation in previous months after Tropical Cyclone Alfred.
The territories faced the largest challenges, with the Northern Territory recording a 3.3% decline and the Australian Capital Territory falling 1.7%.
Salary growth moderates
While job opportunities show signs of recovery, salary growth is moderating. The SEEK Advertised Salary Index recorded annual growth of 3.6% in May, down from previous months, with monthly growth of just 0.2% – the slowest since October 2024.
“Advertised salary growth slowed to 3.6% year-ended in May, with the monthly growth the slowest since October last year,” Chapman explained.
Despite the slowdown, the data provides positive news for job seekers. “The growth in average advertised salaries is currently outpacing living costs, which is good news for those switching employers as they are likely gaining a real wage increase. This means they can purchase more goods and services or save some of their additional earnings,” Chapman said.
The upcoming Fair Work Commission decision is expected to provide additional support. “The Fair Work Commission (FWC)’s Annual Wage Review decision will see the National Minimum Wage and modern award wage rates increase by 3.5% from 1 July. The FWC’s decision should support the relative ongoing strength in advertised salary growth,” Chapman noted.
The employment landscape reveals distinct sectoral patterns. While consumer-facing industries such as Hospitality & Tourism and Administration & Office Support softened in May, this was offset by growth in professional services sectors.
Consulting & Strategy and Design & Architecture emerged as bright spots, being among the few industries recording growth over recent months, indicating a shift toward professional services demand.
Candidate competition reaches new heights
The data reveals an increasingly competitive environment for job seekers. Applications per job advertisement have reached near-record levels nationally, with particularly dramatic increases in some regions.
Tasmania leads with a striking 47.3% year-on-year increase in applications per advertisement, followed by the Australian Capital Territory at 37.3%. South Australia remains the only jurisdiction where applications per job advertisement have declined, down 0.1% month-on-month and 0.6% year-on-year.
The May data suggests Australia’s employment market may be approaching a turning point after nearly three years of decline. The combination of stabilizing job advertisement volumes and moderate but positive salary growth indicates a labor market that, while still facing challenges, is showing resilience.
For job seekers, the data presents both opportunities and challenges. While more positions are becoming available and salaries continue to grow above inflation, competition for roles remains intense with near-record application levels.
The upcoming Fair Work Commission wage increase and continued professional services growth may provide additional momentum for the market’s gradual recovery through the remainder of 2025.
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