Executive Summary (Feb–Jul 2025)
Services-led momentum: Services PMI accelerated into July (53.8–54.1), signalling ongoing expansion and job creation.
Manufacturing stabilising: Judo Bank Manufacturing PMI above 50 in June–July (51.3–51.6); job shedding slowed.
Labour market still tight, gently easing: Unemployment 4.2% in July; ANZ-Indeed job ads dipped 1% m/m but remain high.
Construction mixed: Building approvals volatile; uneven contractor hiring.
Tourism tailwinds: International arrivals up; operators report persistent staff needs.
What We Measured (and Why)
Primary indicators: S&P Global/Judo Bank PMI employment components (services & manufacturing).
Corroboration:
– ABS Labour Force, Job Vacancies, Building Approvals
– ANZ-Indeed Job Ads
– Tourism Research Australia arrivals data
Australia-wide Sector Picture (Last 6 Months)
Services — Expanding; strongest in professional/technical services, tourism-linked roles, and finance.
Manufacturing — Stabilising above 50; selective hiring in automation, quality, maintenance.
Construction — Stop–go; project funding drives employment patterns.
Tourism & Hospitality — Strong recovery; shortages in operations, culinary, front-of-house.
State Spotlights (Who’s Growing)
|
State |
What’s Moving |
Six-month Signal |
|
NSW |
Cyber, AI/Data, Finance, Pro/Tech Services |
Sydney leads in finance & tech; strong services PMI. |
|
VIC |
Cyber, AI/Data, Life Sciences, Pro/Tech Services |
Melbourne tech & biomed clusters sustain selective hiring. |
|
QLD |
Tourism, Passenger Logistics, Renewables |
Tourism recovery strong; renewables projects ramping. |
|
WA |
Renewables/Grid, Logistics, Construction |
Energy transition drives demand; trade/tourism logistics. |
|
SA |
Renewables/Grid, Life Sciences, Infrastructure |
Green energy + biomed precincts maintain hiring. |
Top 10 Hottest Hiring Sectors in Australia (Last 6 Months)
1. Tourism & Hospitality
2. Transport & Passenger Logistics
3. Renewables & Grid
4. Cybersecurity
5. AI & Data
6. Professional & Technical Services
7. Financial Services
8. Life Sciences & Biotech
9. Healthcare Providers
10. Construction & Infrastructure
Hotness Heatmap (States × Sectors)
1 = cold, 5 = very hot — qualitative composite from last six months’ hiring signals.
Labour Demand & Costs Context
Unemployment: 4.2% in July 2025; participation 67.1% (trend).
Job Ads: -1% m/m in July; still near pre-2023 averages.
Macro Backdrop: RBA August statement trimmed growth outlook; hiring likely to remain selective.
What This Means for Recruiters (Next 3 Months)
Focus on NSW/VIC for cyber, AI/data, consulting.
Target QLD/WA for tourism/logistics hiring.
Lean into renewables/grid pipelines nationwide.
For construction, prioritise funded infrastructure and energy projects.
