Advertised salary growth hit 4.4 percent in July, the fastest pace since early 2024, SEEK\u2019s Dr Blair Chapman explains what\u2019s driving it.<\/p>\n
Australian businesses are facing renewed pressure on wages, with advertised salaries climbing at their fastest annual pace in over two years.<\/p>\n
Salary growth accelerated to 4.4% in the year to July, according to the latest SEEK Advertised Salary Index, up from a slower pace earlier in the year and marking the quickest rate of increase since February 2024. Salaries rose 0.4% month-on-month in July, matching the pace recorded between January and April.<\/p>\n
SEEK Chief Economist Dr Blair Chapman says the pickup follows a softer patch. \u201cAdvertised salary growth has accelerated to 4.4% year-ended, with July\u2019s 0.4% rise marking a modest pickup after slower growth in recent months.\u201d<\/p>\n
For business owners weighing pay decisions, there\u2019s a nuance worth understanding. Advertised salaries, the rates businesses offer for new roles, are currently rising faster than what existing employees are actually taking home. Chapman points to the gap. \u201cAdvertised salary growth at 4.4% y\/y is currently outpacing living costs for employee households which rose 3.7% y\/y to June. However, the ABS\u2019s most recent data on take-home earnings show that growth has been slower than advertised salary growth, at 3.7% annually. This demonstrates the potential difference between advertised salaries and current take-home earnings.\u201d<\/p>\n
That gap has implications for staff retention. Employees who switch jobs tend to secure bigger pay jumps than those who stay put and wait for annual reviews. But fewer people are making that move. \u201cSo for those who are willing and able, switching jobs still looks like a good way to see faster growth in pay. However, the job switching rate declined to its lowest ever recorded level earlier this year suggesting fewer people are willing or able right now.\u201d<\/p>\n
Education & Training recorded the strongest annual growth of any industry at 6.4%, its fastest pace since July 2024. Sport & Recreation followed closely at 6.0%.<\/p>\n
At the other end, Legal salary growth has slowed sharply. The industry led growth through much of 2025 but has fallen from a peak of 7.8% in January 2025 to just 2.9% in July 2026. Insurance & Superannuation also eased, down to 3.3% from an April peak of 4.3%.<\/p>\n
Sales recorded one of the weakest results across all industries at 2.6%, a trend SEEK links to higher costs and the effect of interest rate rises on household and business spending.<\/p>\n
A small number of industries pulled back over the past quarter specifically. Government, already the slowest-growing industry overall at 1.1% annual growth, saw a 0.1% quarterly decline alongside a drop in job ad volumes, pointing to softer hiring demand. Consulting & Strategy (down 0.9% over the quarter) and Human Resources & Recruitment (down 0.5%) also eased.<\/p>\n
Tasmania has gone from the slowest-growing state a year ago to the fastest today, with salaries up 5.6% annually, a jump from just 2.0% in July last year.<\/p>\n
New South Wales recorded the slowest annual growth of any state at 4.3%, though that\u2019s still an acceleration of 1.0 percentage point over the year, and the fastest pace for the state since January 2024.<\/p>\n
Western Australia and Victoria both saw steady quarterly gains. WA\u2019s annual growth climbed from 3.7% in January to 4.4% in July, while Victoria\u2019s rose from 2.9% to 4.5% over a similar stretch.<\/p>\n
For SME owners setting pay in the months ahead, the message from the data is straightforward: wage pressure hasn\u2019t eased, and where you sit within it depends heavily on industry and state.<\/p>\n
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