Labour Market Holds Steady as Employers Tread Cautiously and Job Ads Decline

Australia’s labour market is undergoing a period of recalibration, maintaining a steady footing despite recent shifts in employment figures and recruitment activity. In February, the national unemployment rate held firm at 4.1%, indicating a degree of stability amid broader economic adjustments.

However, employment figures painted a more complex picture. Seasonally adjusted full-time employment dropped by 35,700 positions, while part-time roles fell by 17,000. The decline suggests a cautious recalibration by employers, possibly in response to economic uncertainty or evolving workforce dynamics.

Jobs and Skills Australia reported a notable 5.9% decline in online job advertisements—equating to 13,200 fewer ads—marking the sharpest monthly drop since late 2022. SEEK echoed this trend, citing a 1.8% dip in job postings during February, following a particularly robust January.

Despite these contractions, the overall labour market remains relatively robust. The Federal Government’s latest Budget forecast has revised the anticipated unemployment peak downwards, now expected to reach 4.25%—a quarter-point lower than the December estimate. This adjustment underscores underlying confidence in the economy’s ability to absorb fluctuations in workforce demand.

As businesses navigate shifting hiring patterns, this report explores key themes emerging across the Australian employment landscape, including the evolving nature of recruitment, ongoing skills shortages, and the pressures facing both employers and jobseekers in 2025.

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