After months of stagnation, advertised salaries in Australia are showing signs of renewed growth. SEEK’s latest Advertised Salary Index (SASI) reports a 3.4% year-on-year increase in August 2025, with a 0.3% monthly rise — the sharpest lift since April. While modest, this uptick suggests that the wages slowdown seen earlier in the year may be bottoming out.
Blair Chapman, SEEK’s senior economist, says the data reflects a labour market that is “rebalancing” rather than overheating. “Advertised salaries are still growing, but more moderately than we saw in 2022–2023,” he noted. “The latest increase is a welcome shift after several flat months, though real wage gains remain limited.”
A Market of Mixed Speeds
Not all industries are moving in unison. Some sectors continue to see solid pay increases, while others lag well behind.
- HR and Recruitment roles have recorded one of the sharpest jumps, up 4.6% year-on-year, driven by sustained demand for workforce planning, onboarding, and compliance expertise.
- Legal, real estate and property roles have also tracked above the national average, supported by strong sectoral demand.
- By contrast, advertising, arts and media have experienced sluggish growth, reflecting softer hiring activity in creative industries.
This uneven wage landscape highlights how sector-specific factors — regulatory change, talent shortages, or industry cycles — continue to shape salary trajectories.
Geographic Divergence
Salaries are not just split by industry — the state picture is equally varied.
- The Australian Capital Territory continues to lead in advertised pay growth, supported by steady public sector hiring.
- Queensland, South Australia and Western Australia are experiencing respectable increases, buoyed by infrastructure and resources activity.
- Tasmania, however, is lagging, where limited labour market demand is keeping salary growth subdued.
This patchwork means jobseekers’ bargaining power differs significantly depending on where they live and what sector they work in.
Salaries vs. Cost of Living
Despite the headline increase, many workers are finding that pay packets are still only just keeping up with everyday expenses. Inflation, while easing from its peak, continues to erode purchasing power.
“Advertised salary growth above 3% sounds positive, but in real terms, many households aren’t feeling the benefit,” Chapman explained. “Rising rents, mortgage repayments, and utility bills are still stretching budgets.”
For employers, this dynamic creates a recruitment challenge. Candidates may demand higher salaries to offset cost-of-living pressures, while businesses – particularly SMEs – are cautious about escalating wage bills in a cooling economy.
Recruitment Implications
The latest figures indicate that while the labour market remains competitive, it is no longer operating at the intensity of the post-COVID rebound. Applications per job ad are slowly rising, and employers have more choice than in the peak of the 2021–22 talent squeeze.
For recruitment agencies, this means:
- Negotiation is key: Clients may be hesitant to stretch budgets, but salary transparency and market benchmarking remain critical to securing talent.
- Sector focus matters: Agencies servicing industries with above-average wage growth (e.g. HR, legal, property) may find opportunities to reposition their value offering.
- Retention is under scrutiny: With salary growth uneven across industries, recruiters report more candidates moving laterally for pay increases rather than career progression.
What Comes Next?
Looking ahead, economists expect advertised salaries to continue growing modestly through late 2025 and into 2026, but not to return to the rapid increases seen in recent years. A softening economy, cautious business sentiment, and a stabilising labour market are all acting as natural caps on wage acceleration.
For recruiters, the key will be helping clients balance budget realities with candidate expectations. Agencies that can demonstrate up-to-date salary insights, industry benchmarking, and creative talent strategies will be well positioned to navigate this shifting landscape.
“Salary growth is only one part of the story,” Chapman added. “Employers who can’t compete on pay will need to lean more heavily on flexibility, career development, and workplace culture to attract and retain staff.”
Sources
- SEEK Advertised Salary Index (August 2025)
- Staffing Industry News: SEEK average advertised salary growth edges up in August
- HRD Australia: HR & recruitment roles see 4.6% salary growth
- SEEK: Advertised Salary Index October 2024 report
