Australian Employment Market Update
Released 21/2/25
Key Take Aways: A Resilient Workforce in Transition, business confidence rising
The latest employment data paints a picture of resilience in the Australian labour market. Despite economic fluctuations, the workforce has shown remarkable stability, even as unemployment edges up slightly. With job creation remaining positive and participation rates at record highs, the broader outlook suggests a measured transition rather than a downturn.
Employment growth remains steady, with over 44,000 new jobs added in January, accompanied by a record participation rate of 67.3%. While unemployment has inched up to 4.1%, a significant portion of this is attributed to seasonal factors—more individuals waiting to start jobs rather than an overall decline in hiring. This suggests that demand for workers remains intact, balancing out potential concerns over wage pressures.
Wages and Cost Pressures
Wages growth has continued to moderate, rising at a slower pace compared to the inflation-driven spikes seen over the past two years. With the Wage Price Index now growing at 3.2% annually, businesses may find some relief as labour cost pressures ease. Public sector wages, in particular, have softened, reflecting fewer new enterprise agreements and more modest increases. This shift indicates a more sustainable trajectory in wage growth, avoiding excessive inflationary pressure while still supporting household incomes.
Consumer Spending and Business Confidence
Retail sales have shown early signs of recovery, with spending up in late 2024, driven by promotional activity and easing inflation. However, early 2025 data suggests a slight pullback, raising questions about whether this rebound will be sustained.
On the business side, business confidence has shown signs of improvement. Firms appear cautiously optimistic, eyeing inflation stabilisation and potential interest rate cuts as key factors in their planning.
What This Means for Job Seekers and Employers
For job seekers, the employment landscape remains favourable, with continued demand across various sectors. The rise in participation suggests that individuals are still entering the job market with confidence.
Employers, meanwhile, must navigate a tight labour market where competition for skilled workers remains strong, albeit with some easing in wage pressures.
Jobs in the mining sector in 2025
As Australia’s minerals and energy sector faces shifting global dynamics, employment in mining, energy, and related industries will inevitably feel the impact. Commodity prices are expected to decline further in 2025 and 2026, raising concerns about job stability, investment, and regional economies.
1️⃣ Falling Commodity Prices and Employment Risks
🔻 Iron ore and coal downturn: Australia’s largest exports—iron ore, thermal coal, and metallurgical coal—are driving a projected 10.5% drop in commodity prices in 2025 and 8.1% in 2026.
🔻 China’s economic slowdown: Weaker domestic demand and rising trade barriers are squeezing Chinese steel production, reducing demand for Australian resources.
🔻 Mining & extraction job market impact: A decline in prices typically leads to lower exploration and capital expenditure, which can translate to job losses in mining, logistics, and engineering.
2️⃣ Energy Sector: A Mixed Outlook
🔹 Oil & gas prices show volatility: LNG prices have rebounded to US$12.6/mmbtu for 2025, supported by cold winters in Asia and Europe. This could sustain jobs in LNG production and export logistics.
🔹 Coal jobs at risk: Global coal consumption is expected to plateau as renewable energy growth accelerates, affecting long-term employment in coal mining.
3️⃣ Manufacturing & Infrastructure Jobs: The China Effect
📉 Base metals under pressure: The global base metals index is forecasted to decline by 2.6% in 2025 and 10.2% in 2026, reducing demand for skilled trades such as boilermakers, fabricators, and maintenance workers.
📉 Trade tensions impact on steel exports: Growing international trade restrictions may hurt Australian manufacturers dependent on China, putting engineering, transport, and supply chain jobs at risk.
4️⃣ Bright Spots: Gold & Renewable Energy Growth
✨ Gold prices surge: With gold hitting US$2850/oz in 2025, exploration and mining jobs in Western Australia and Queensland could benefit.
⚡ Renewables on the rise: As coal consumption flattens, Australia’s transition to renewables may open new opportunities in solar, wind, and battery storage infrastructure.
What This Means for Employers & Job Seekers
🔍 For employers: Companies in mining, energy, and manufacturing need to adapt workforce strategies to navigate price downturns while capitalizing on emerging opportunities in gold, LNG, and renewables.
🔍 For job seekers: Professionals in mining, engineering, and trades should consider upskilling in renewable energy, automation, and emerging technology to stay ahead in the shifting employment landscape.
Final Thoughts
The minerals and energy sector remains a cornerstone of the Australian economy, but market fluctuations, trade policies, and energy transitions will shape employment trends in 2025 and beyond. Businesses and job seekers who adapt to these changes will be best positioned for long-term success.
Emerging roles in the Australian job market.
As the job market evolves, new roles are emerging to meet the demands of an advancing economy.
Recently, MACRO Recruitment has noted the identification of 37 such roles that are reshaping Australia’s employment landscape. From energy brokers to genetic counsellors and molecular biologists, these positions represent some of the most exciting opportunities in today’s job market.
Emerging roles are identified based on recent job market data, focusing on new or rapidly growing positions. These are roles that have only appeared in recent years or are expanding from a small base, capturing the ongoing shifts in skills requirements and employment trends.
The 37 identified roles fall into four main themes, each reflecting the direction of Australia’s economy and societal needs:
Health, Care, and Medical – With 13 roles, this category includes positions like community mental health workers, allied health assistants, lifestyle assistants, and genetic counsellors. These roles highlight an increasing focus on holistic and preventive health services.
Data and Technologies – This category introduces 10 roles such as machine learning engineers, blockchain engineers, and remote sensing specialists. These roles emphasize the growing importance of digital transformation and data-driven decision-making across industries.
Net Zero – Sustainability-driven positions, including electric vehicle technicians, battery design specialists, recycling coordinators, and energy brokers, are shaping this category. With nine roles, it reflects the drive towards a sustainable future.
Science and Engineering – Five key roles, including reliability engineers, molecular biologists, and bioinformaticians, mark this theme. These roles are crucial in supporting innovation and scientific advancement.
Emerging roles help shape a broader understanding of evolving skill requirements in the Australian workforce, reflecting economic and technological advancements.
By keeping track of these shifts and analyzing required skills, MACRO Recruitment is committed to supporting Australia’s adaptation to the changing employment landscape. The aim is to work alongside education and training systems, ensuring talent is equipped with the necessary skills to meet market demand and drive Australia’s progress.
The future of work is unfolding, and these emerging roles will play a significant part in shaping Australia’s job market for years to come.
AI Trends
Key Take Aways:
* AI is set to shape recruitment practices significantly in 2025.
* Growing importance of the employee value proposition (EVP) in the hiring process
* Leadership is the most valued skill set
The initial excitement around AI’s potential to streamline hiring and reduce costs led many organizations to quickly adopt these tools, expecting immediate results. However, as the technology became more embedded in recruiting processes, it became clear that AI is not the “quick fix” many had anticipated.
Despite some hurdles, the a recent report highlights AI’s continued importance in talent acquisition and management, with companies focused on questions such as:
- Which AI tools offer reliable accuracy?
- How should success be measured?
- How can algorithmic bias be mitigated?
- What is the right investment level in AI technology that’s still evolving?
Skills sought
A key trend identified in the report is a sharpened focus on critical skills.
Nearly 24% of respondents consider finding the right skills to be their primary challenge for 2025, with leadership (69%), technical (59%), communication (58%), and problem-solving skills (58%) among the most valued.
Additionally, 31% of respondents expect talent acquisition to align more closely with business transformation goals over the next five years, integrating more closely with overall talent management strategies.
The report also underscores the growing importance of the employee value proposition (EVP) in the hiring process. As candidates increasingly research prospective employers and seek alignment with company culture, 45% of talent professionals view cultural integration as essential for attracting talent in 2025. Tailored EVPs—designed for specific talent groups based on location, generation, or personal interests—are found to improve recruitment outcomes.
What to Watch in the Coming Months
While the survey shows some stabilizing trends, both groups should prepare for potential headwinds like supply chain disruptions or tighter consumer spending. Weak forward orders and rising costs suggest the recovery could still be fragile.