Possible easing of salary growth, according to latest SEEK ASI

The most recent SEEK Advertised Salary Index (ASI) has been announced. The report outlines the salary data for jobs posted on SEEK across Australia for December 2022, with monthly, quarterly and yearly insights.

December saw the lowest monthly rise in advertised salary growth since it shot up from April to May 2022, with salary growth climbing 0.3 per cent month on month.

SEEK senior economist Matt Cowgill commented: “The month-on-month gains in advertised salary slowed a touch in December, falling from 0.5 to 0.3 per cent. This is the slowest month-on-month rise since April and may be an early sign that advertised salary growth is moving away from its peak.”

While this may be a sign of salary increases easing, the year-on-year picture by SEEK shows advertised salaries with annual growth at 4.7 per cent, up to and including December 2022. Marked troughs in yearly growth were seen at the end of 2020 and about a third of the way into 2021.

Mr Cowgill continued: “Advertised salaries are still growing at the fastest annual pace on record, rising by 4.7 per cent over the year, based on SEEK ASI data dating back to 2016.

“This has been fed into by the tight labour market – with unemployment near a 50-year low – creating a bidding war for talent, as well as the rising cost of living driving salaries up.”

If the latest report’s results are an indication of salary growth slowing, the same was said in September, and we’ve seen continued growth since then. Mr Cowgill said back in October: “Advertised salaries are still growing at a decent pace, but they’re no longer racing ahead like they were earlier this year.”

The December quarter saw a 1.2 per cent increase in growth since the September quarter, indicating that while salaries may not be climbing as drastically as they were previously, growth is still increasing.

November 2021–November 2022 saw an ASI increase of 4.4 per cent. Mr Cowgill said: “This trend in advertised salaries is likely a sign that overall wages and salary growth will continue to pick up.”

There seems to be confusion on whether salary growth is picking up with the pace or starting to slow down. Perhaps this highlights the current unpredictability of the job market.

For the December SEEK Advertised Salary Index, see here.

For the November SEEK Advertised Salary Index, see here.