What’s happening: Job openings fell 0.5% month-over-month in November, with the annual decline slowing to 1.9%, according to SEEK’s latest employment report.
Why this matters: Small businesses weathering the Christmas slowdown are facing a divided workforce landscape. While overall vacancies fell, the industrial and construction sectors showed strength, especially in South Australia.
The Australian labor market ended November with a modest decline in vacancies, but beneath the headline numbers lies a more complex picture that small business owners need to understand as they plan for the year ahead.
According to SEEK’s November 2025 employment report, job openings fell 0.5% month-on-month, the latest in a series of rising declines since August. The annual decline slowed to 1.9%, suggesting the market may be stabilizing rather than going into freefall.
Dr. SEEK Senior Economist Blair Chapman characterized 2025 as a year of two distinct halves.
“This year has been in two halves: the first six months showed small but significant growth after many months of decline, and then, since August, we have seen incremental declines month after month,” Dr Chapman said.
The decline was not uniform across all sectors. Manufacturing, Transport and Logistics posted a monthly increase of 0.5%, while Engineering rose 1.1%. However, Retail and Consumer Products fell 3.8%, and Trades and Services fell 1.2%.
“There has been increased activity in the industrial and construction sectors, along with growth rates in healthcare and medical and retail and consumer products. These sectors in particular have cooled in recent months, contributing to an overall slowdown as we enter the summer,” said Dr Chapman.
South Australian dollar trend
While most of the country thought vacancies were cool, South Australia emerged as a standout performer, continuing to defy the national trend with both monthly and annual growth in vacancies.
“The highlight in November is South Australia, which continues to defy the national trend with both monthly and year-on-year growth in vacancies. This indicates strong underlying demand in the state, particularly for workers in the industrial and construction sectors,” said Dr. Chapman.
The pattern reflects recent small business hiring trends, showing that regional differences in labor demand can create opportunities for small and medium-sized businesses willing to adjust their hiring strategies.
Salary growth is unexpectedly accelerating
In a surprise development, advertised salary growth rose 0.4% month-over-month in November, the fastest monthly increase since June 2024. Annual salary growth accelerated to 3.8% year-over-year, compared to a range of 3.3% to 3.7% in recent months.
Dr. Chapman attributed the acceleration to a shift in which sectors are driving job growth.
“Although overall employment growth is slowing, a shift from the public sector to the private sector as the main driver of job growth could explain the faster wage growth. This is because private sector companies are more likely to use individual contracts and have a greater ability to offer higher salaries than the public sector,” said Dr. Chapman.
He noted an intriguing parallel with public sector agreements.
“That said, the Australian Public Service Commission’s enterprise bargaining agreement specified a 3.8% annual salary increase for 2025, the annual rate of advertised salary growth we are currently seeing,” said Dr. Chapman.
The acceleration comes at a challenging time for many small businesses. Earlier this year, pressure on wage growth increased as compliance costs and regulatory obligations pushed the total cost of employment above base wages alone.
Industrial sectors drive demand
The number of applications per vacancy remained unchanged month over month, marking the fourth month of relative stability. However, the higher levels keep the market highly competitive for candidates.
“The number of applications per vacancy, which has also stabilized since mid-year, remains high, so the market remains very competitive for candidates as vacancies slow down over the Christmas holidays,” Dr Chapman said.
For small business owners, the data suggests that a nuanced approach to hiring may be necessary heading into 2026. While overall demand cools, specific sectors and regions are showing resilience. Faster salary growth suggests that private sector companies are willing to pay more to secure talent, potentially putting pressure on smaller employers that don’t have the same pay flexibility.
The stabilization of the number of applications per vacancy, while maintaining the high level, suggests that job seekers remain actively engaged despite the slowdown. This creates both opportunities and challenges for small and medium-sized businesses competing with larger companies that can offer higher salaries and comprehensive benefits to attract top candidates.
As the summer holidays approach and companies prepare for 2026, understanding these regional and sectoral differences will be critical for small businesses planning their workforce strategies in an increasingly competitive talent market.
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