Australian Job Market Tightens as Openings Decline and Competition Increases

Job Openings Continue to Fall

Australian workers searching for new opportunities are encountering a tougher hiring environment. According to the latest data from employment platform Seek, job advertisements fell by 0.8% in May and were down 4.5% compared with the same period a year earlier.

At the same time, competition for available positions increased. Applications per advertised role rose 3.6% during the month and were up 5.5% year over year.

Employers Taking a Cautious Approach

Seek Chief Economist Blair Chapman said hiring activity has softened across most regions and industries.

He noted that while the monthly decline in job advertisements was modest, it suggests employers remain careful about expanding their workforce. Rising business costs, economic uncertainty, and lower confidence levels are contributing to more restrained hiring decisions.

Chapman also said salary growth remains positive but is increasing at a slower pace as organisations manage ongoing financial pressures.

Wage Growth Moderates

The report found employers offered salaries that were 0.3% higher in May compared with the previous month. Annual advertised salary growth stood at 4.1%, indicating that pay is still increasing but at a more measured rate.

Inflation Remains a Key Concern

The findings come after the Reserve Bank of Australia left the cash rate unchanged at 4.35%.

RBA Governor Michele Bullock said controlling inflation remains the central priority, warning that persistent inflation could eventually have a greater negative impact on employment if stronger policy measures become necessary.

She emphasized that bringing inflation back within the target range is important for maintaining long-term labour market stability.

Signs of Softening Employment Conditions

While Australia's job market has remained relatively resilient in recent years, recent labour data suggests some weakening.

In April, employment fell by 18,600 people, while the number of unemployed Australians increased by 33,000. The number of individuals seeking both full-time and part-time work also rose during the month.

According to the RBA, reducing inflation remains essential to supporting sustainable economic and employment conditions over the longer term.