Australia’s job market is showing signs of cooling — at least on the surface. According to the Australian Bureau of Statistics, there were 328,900 job vacancies in February 2025, marking a 4.5% decline from the previous quarter and a 9.2% drop year-on-year.
This continues a longer-term trend, with job vacancies falling in 10 out of the last 11 quarters. On paper, this suggests a loosening labour market. But for many employers, the reality is more complex.
A Tight Labour Market Persists
Despite falling vacancies, labour market conditions remain tight, according to the Reserve Bank of Australia (RBA). The RBA notes that even with a slight decline in employment in February, key indicators such as labour underutilisation remain at historically low levels.
In addition, business surveys and consultations indicate that many employers are still constrained by a lack of available labour. While wage pressures have eased slightly more than anticipated, productivity growth remains sluggish, and unit labour costs continue to rise.
A Shift in the Supply–Demand Balance?
The latest data from Jobs and Skills Australia suggests the balance is slowly shifting back in favour of employers.
In the December 2024 quarter, each job vacancy attracted an average of 31.7 applicants, up significantly from 18.3 a year earlier. Of those, an average of 9.5 were considered suitable (compared to 6.1 the previous year). That’s good news for businesses hoping to fill roles more quickly — but it doesn’t mean the talent shortage is over.
The Bottom Line
Even as vacancy numbers fall, many businesses are still struggling to find the right people. Skills mismatches, sector-specific shortages, and slower-than-expected productivity gains continue to complicate the recruitment landscape.
For employers, this means staying competitive with salaries, offering flexibility, and investing in training or upskilling programs may still be necessary strategies. For job seekers, rising competition means polishing your application and ensuring your skills are aligned with market needs is more important than ever.
Are you an employer facing hiring challenges — or a job seeker navigating a crowded field? Share your experience in the comments below.
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