Welcome to our latest snapshot of the Australian employment market, where we examine key trends and provide practical insights for employers shaping their recruitment strategies.
The closing months of 2024 revealed notable shifts in hiring activity across Australia. While national employment figures remained steady, we observed significant changes in workforce patterns and regional hiring activity.
This report explores these developments and their implications for employers planning their 2025 talent strategies.
Employment insights
Stable foundation, changing dynamics
The unemployment rate holds steady at 4.0%, indicating sustained demand for skilled professionals. However, what makes this quarter particularly interesting is the continuing shift in how Australians work: while full-time employment decreased by 23,700 positions, part-time roles surged by 80,000. This trend reflects changing societal and economic factors, from work-life balance preferences to the rise of the gig economy.
Participation rate:
Record workforce participation
We’re seeing historically high levels of workforce engagement, with the participation rate holding strong at 67.1% and the employment-to-population ratio reaching 64.5%. This means more Australians than ever are either working or actively seeking employment, bringing both exciting opportunities and unique challenges for employers.
Key takeaways for employers
• Talent availability: With the current high levels of workforce engagement, employers may face challenges in finding and retaining top talent, as the demand for skilled workers continues to outpace supply.
• Retention strategies: Employers should focus on retention strategies to attract and keep their workforce motivated and engaged.
• Workforce development: Investing in training and development programs can help employees grow within the company, addressing skill gaps and preparing for future challenges.
• Work-life balance: Maintaining a healthy work-life balance is an important factor to many. Offering flexible work arrangements and support services can enhance employee wellbeing and attract quality talent.
Source: ABS Labour Force, Australia December 2024
Job advertisement trends
Job ads
December 2024 followed usual seasonal trends, with expected year-end adjustments leading to a quieter month. Job ads saw a decrease of 3.0% monthon-month and 12.2% year-on-year. Despite this overall decline, several sectors continued to experience growth, and candidate applications remained robust. We are already seeing numbers increase in January and February, as this is the time of year that brings new career opportunities.
Industry competition
Candidate competition varied widely across different sectors. Government & Defence roles received the highest interest, with 74 applications per advertisement, indicating a strong attraction to public sector opportunities.
Healthcare & Medical positions were also highly sought after, with 68 applications per role, while Education & Training saw 60 applications per posting. This high level of engagement suggests a competitive environment for candidates in these fields, offering employers access to a rich talent pool but also necessitating more sophisticated screening processes.
Additionally, the arts and recreation sector led industry increases, followed by administration and wholesale trade, while construction and professional services exhibited more moderate growth.
Source: SEEK Employment Report December 2024
Regional market variations
December hiring activity eased across all states and territories. Victoria, Qld and New South Wales showed the most stability with minimal declines, while the ACT and South Australia experienced more pronounced adjustments. Western Australia, Northern Territory, and Tasmania recorded moderate decline.
Source: SEEK Employment Report December 2024
Key takeaways for employers
• Timing is key: Consider strategic timing of recruitment initiatives around seasonal patterns.
• Sector-specific growth: Despite the overall decline, certain sectors continue to grow, indicating targeted opportunities for hiring in those areas such as health, government and education.
• Strong candidate engagement: Candidate engagement remains robust, suggesting that job seekers are still actively looking for opportunities, even if the number of job ads has decreased.
• Competitive landscape: With fewer job ads, the competition for available positions may increase, providing employers with a deeper talent pool to choose from.
Wage growth insights
Steady growth continues
Advertised salaries rose 0.7% in Q4 2024 and 3.6% year-on-year, maintaining positive momentum. December saw further monthly growth at 0.3%, reflecting continued employer confidence in offering competitive compensation.
Industry variations
Source: SEEK Advertised Salary Index December 2024
Industry-specific data from the ABS Wage Price Index highlights notable variations in salary growth. Public sector wages have outpaced private sector wages for the first time since 2020, with a growth rate of 3.7% compared to 3.5% in the private sector.
Annual wage growth by sector, seasonally adjusted
Source: ABS Wage price index
Private sector enterprise agreements reached a significant milestone in Q2 2024, with a 4.0% increase—the highest rate in 12 years.
The highest rate in 12 years “ “
Overall, these trends suggest a dynamic and evolving landscape for salaries in Australia, with both public and private sectors showing a level of growth.
Key takeaways for employers
Public sector competitiveness: The public sector is now outpacing the private sector in wage growth for the first time since 2020. Employers in the private sector may need to enhance their compensation and benefits packages to remain competitive and attract skilled workers.
Enterprise agreements: The significant increase in private sector enterprise agreements, reaching the highest rate in 12 years, indicates a broader trend of rising wages. Employers should consider the implications of these agreements on their overall compensation strategy and budget planning.
Industry-specific strategies: Different industries are experiencing varying rates of salary growth. For example, arts and recreation, administration, and wholesale trade are leading in salary increases. Employers in these sectors should be prepared to adjust salary offerings to match market trends and maintain a competitive edge.
A final word: Strategic insights for employers
In today’s market, with unemployment at 4.0% and record-high participation rates, employers must balance competitive compensation with strategic workforce planning. While the job market shows seasonal fluctuations, strong candidate engagement and varying industry growth rates present both opportunities and challenges. Success in 2025 will depend on employers’ ability to offer compelling value propositions while adapting to evolving market conditions
How we can help
Drake International delivers targeted staffing solutions through:
• Strategic recruitment - Access to pre-vetted, qualified talent
• Market insights - Competitive salary benchmarking and workforce planning
• Industry expertise - Sector-specific recruitment strategies
Whether you’re tackling staffing challenges or planning for growth, we’re here to help. Contact Drake International today to find the right solution for your business.
None of the information provided by Drake International within or in connection with this publication is intended to offer legal, financial, business, information technology, or any other professional advice. Drake International provides this information strictly on a no-reliancebasis, and we expressly disclaim all liability for any claims arising from or in connection with any representation made herein, whether express or implied, or reliance upon any such representation.
