The jobs boom that seemed unstoppable has finally begun to fade. After years of record-low unemployment and frantic hiring, new data shows Australia’s job market is cooling — and it’s happening faster than many expected.
Hiring Freeze Looms Over Employers
According to SEEK’s latest Employment Report, job ads dropped 1.8% in December, hitting their lowest point since early 2021. Compared to last year, listings have fallen by almost 20%, marking the steepest decline in more than three years. It’s a sharp turnaround from the hiring frenzy that defined the post-pandemic recovery, when employers were desperate to fill roles and jobseekers had the upper hand.
Now, that balance of power is shifting. Employers are becoming more cautious, trimming job postings as they brace for slower economic growth. Many are taking a “wait and see” approach before adding new positions — a sign that uncertainty, not opportunity, is shaping business decisions at the start of 2026.
Jobseekers Face Growing Competition
The slowdown hasn’t gone unnoticed by workers either. SEEK’s data shows that applications per ad jumped by 8.3% in December, the highest level in years. In simple terms, there are more people chasing fewer roles. Compared to mid-2022, the number of applicants per job has nearly doubled, and that means tougher competition for jobseekers across most industries.
Sectors that were previously red-hot — like retail, construction, and hospitality — are cooling fast. Even traditionally stable industries such as healthcare and education have seen small drops in new listings, although they remain strong by long-term standards.
It’s not all bad news, though. Some areas, including technology, aged care, and renewable energy, continue to show solid demand for skilled workers. But on the whole, the days of plentiful job openings and easy career moves are fading.
RBA Watching Closely
For the Reserve Bank of Australia (RBA), this data is significant. A cooler job market could help ease wage pressures and bring inflation down — exactly what policymakers have been hoping for. But there’s a fine line between cooling and freezing. If hiring slows too much, it could dent consumer confidence and spending, adding another drag to the already fragile economy.
Economists say the slowdown was almost inevitable after months of high borrowing costs and weakening demand. Still, few expected it to happen this quickly. “Businesses are adjusting to a new normal,” one analyst explained. “The era of easy growth is behind us”, reports Yahoo Finance.
What Comes Next
For now, unemployment remains relatively low, and economists don’t expect a major spike just yet. But if job ads keep falling through early 2026, that could change. The next few months will be crucial in determining whether this is a gentle slowdown — or the start of a tougher period for Australian workers.
For jobseekers, it might be time to sharpen résumés, refresh LinkedIn profiles, and start applying a little earlier than usual. Because while the market hasn’t turned icy just yet, there’s definitely a chill in the air.
