Australia’s labor market is showing signs of cooling, with job ad volumes dropping for the second consecutive month, according to the latest SEEK Employment Report for March 2025.
The report highlights a 3.0% month-on-month decline in job ads, alongside a significant 12.8% year-on-year drop, partly influenced by the shifting timing of Easter. Meanwhile, the SEEK Advertised Salary Index (ASI) indicates modest salary growth, with advertised salaries rising 0.3% month-on-month and 3.7% year-on-year.
The decline in job ads was felt nationwide, with Queensland experiencing the sharpest fall at 6.9% month-on-month, the state’s largest drop since April 2020. SEEK attributes this partly to the impact of Tropical Cyclone Alfred, which hit south-east Queensland and coastal northern New South Wales hardest. All states and territories saw declines, with the Australian Capital Territory down 4.8% and Tasmania 2.6%. In Victoria and New South Wales, job ads fell 1.7% and 1.9%, respectively, driven by reduced demand in sectors like Healthcare & Medical and Administration & Office Support.
Despite fewer job ads, competition for roles is intensifying. Applications per job ad rose 2.0% month-on-month in February (the latest data available), reaching levels not seen since mid-2020, during the height of the pandemic. The Australian Capital Territory and South Australia saw the largest increases in applications, up 7% and 6%, respectively.
On the salary front, the SEEK ASI shows advertised salary growth holding steady at 0.3% month-on-month since December, with annual growth at 3.7%. However, SEEK Senior Economist Dr. Blair Chapman warns of potential slowdowns ahead. “Advertised salary growth has ticked up to 3.7% year-ended in March, with monthly growth remaining around 0.3% since December,” Chapman said. “If advertised salary growth continues at this pace m/m, then annually, it will slow to 3.4% by June. However, an increase in economic uncertainty combined with a slow start to the year for the labour market may see annual advertised salary growth slow faster. The ABS’ broader wage price index slowed to 3.2% year-ended in December, so with advertised salary growth above 3.2% it suggests that we may see a slight reacceleration of broader wage growth for a couple of quarters.”
Industry trends reveal mixed outcomes. Healthcare & Medical saw the largest job ad decline at 4.2%, followed by Hospitality & Tourism (-14.8%) and Manufacturing, Transport & Logistics (-8.1%). However, Insurance & Superannuation and Call Centre & Customer Service bucked the trend, with job ads rising 3.8% and 3.2%, respectively.
Chapman noted broader economic concerns impacting the market. “Labour market demand continues to cool, with March marking the second consecutive month of falling ad volume,” he said. “However, the quarterly view suggests demand is a little more robust with only a small decline and an increasing number of industries experiencing growth. Likely as a consequence of Tropical Cyclone Alfred, Queensland experienced a sharp 6.9% drop in job ad volume month-on-month, the state’s most significant monthly fall since April 2020, with locations in south-east Queensland suffering the largest declines. Alfred also likely led to notable month-on-month declines in coastal regions of northern NSW. With heightened levels of economic uncertainty continuing locally and globally, it is unclear whether the broad robustness in the market will continue.”
The SEEK reports underscore a labor market at a crossroads, balancing modest salary growth against declining job opportunities and rising competition. For more details, visit SEEK’s employment marketplace at seek.com.au.
Source: SEEK Employment Report and SEEK Advertised Salary Index, March 2025.
