New data from SEEK shows it’s a bit of a mixed bag for Australia’s small business owners trying to grow their teams. The job market is cooling off, while wages are still edging up 

According to SEEK’s latest Employment Report, job ads fell 0.5 per cent in February, marking the third straight month of decline and continuing a longer downward trend. Year-on-year, ads are now down 2.6 per cent, reflecting what SEEK is calling “broad caution in the labour market”.

SEEK Chief Economist Dr Blair Chapman says the slowdown has been building for a while:

“Ad volumes have been trending down slowly since mid-last year, trend-adjusted. The downward trend is driven by broad caution in the labour market, and this may persist for some time as global uncertainty rises.”

Fewer applications, too

It’s not just job ads dropping. Candidate activity is easing as well. Applications per job ad fell 0.6 per cent month-on-month, continuing a gradual decline from a peak in mid-2025.

That suggests job seekers are being a bit more selective, or perhaps just a bit more cautious about making a move.

Wages, however, are still rising. Even as hiring demand softens, pay packets are still going up. Advertised salaries rose 0.4 per cent month-on-month and are up 3.9 per cent year-on-year, continuing to climb.

So while it might be a touch easier to attract candidates than it was last year, you’re still likely to be paying more to get them through the door.

AI isn’t taking your job (yet)

There’s been plenty of noise about AI replacing jobs, but the data doesnt reflect the same hysteria. SEEK’s analysis found automation is “not yet having a negative impact on job ad volumes”, despite the rapid rise of AI tools.

Dr Chapman says it’s important not to jump to conclusions:

“While it may be tempting to attribute this decline to the rise of AI, our findings suggest automation is not yet having a negative impact on job ad volumes.”

What is changing, though, is the type of skills employers are chasing. References to AI-related skills in job ads have almost tripled since 2019, and are now spreading beyond tech roles into areas like marketing and communications. Jons are evolving, not disappearing.

Not all industries (or states) are equal

The hiring slowdown is hitting different states and indusries in different ways. Some sectors are still pushing ahead, particularly construction and logistics, which are seeing strong annual growth. Meanwhile, white-collar sectors like consulting, banking and tech are seeing sharper declines in job ads.

Geographically, Western Australia is the standout, recording both monthly and annual job ad growth. It’s the only state to buck the national trend. Everywhere else is trending slightly down, particularly New South Wales, Victoria and Queensland.

Is the talent squeeze over?

The hiring market may be loosening, but iadding a new team meber isn’t getting any cheaper. While it may be a little easier to attract candidates than it was 12 months ago, business owners will still need to offer competitive pay, especially in industries where demand remains strong.

The reports also suggest that if you’re not thinking about AI skills yet, now’s probably the time to start. The shift is already happening in job ads, even if it’s not yet showing up in job losses.

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