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Regional Labour Markets Update – December 2025

2 February 2026

Using datasets from the Australian Bureau of Statistics (ABS) and Jobs and Skills Australia (JSA), the Regional Australia Institute (RAI) provides a monthly snapshot of the regional labour market, offering insights into key indicators for job vacancies, labour force size, participation rate, employed population and unemployment rate.  This analysis not only captures current labour market dynamics but also examines historical trends to provide a comprehensive perspective for regional Australia.

Regional Australia is defined as all parts of Australia outside the five metropolitan cities with populations exceeding one million people-Sydney, Melbourne, Brisbane, Adelaide and Perth. 

The December 2025 labour market data shows an expected seasonal softening in regional jobs vacancies but continuing tightness and strength in regional labour markets overall. Improvements in employment, participation, and unemployment indicate that labour demand remains broadly balanced by supply. Widespread lower regional job vacancies than this time last year, however, may point to a softening in regional labour markets in 2026.

Regional Job Vacancies

Regional job vacancies fell to 64,406 in December 2025, representing a 10.2% decline from the previous month. In comparison, metropolitan vacancies declined at a faster rate of 12.0%. This downward trend is consistent with the seasonal slowdown typically observed over the December to February period, when recruitment activity eases as businesses defer hiring decisions until the new year.  However, vacancies are 5.5% lower than December 2024, signalling a softer jobs market entering 2026 than a year earlier.

Regional Australia Job Vacancies

Source: Jobs and Skills Australia, monthly internet vacancies, RAI

 

The top three occupational categories for job vacancies were Professionals (28%), Technicians and Trade Workers (16%) and Community and Professional Service Workers (13%).  

All IVI regions recorded a monthly decline. The regions with the smallest declines were:

  • Wimmera & Western in VIC (-5.1%)
  • Gippsland in VIC (-6.5%)
  • Pilbara & Kimberley in WA (-6.5 %)

Regional job vacancies in all states and territories are lower than this time last year, with the exception of South Australia with the same number of vacancies. This demonstrates a widespread reduction in regional job vacancies.  The capital cities have experienced a sharper annual reduction in jobs vacancies.

Number of advertised job vacancies
 
State/Territory Dec-24 Nov-25 Dec-25 % change (monthly) % change (annual)
Regional Australia 68,167 71,751 64,408 -10.20% -5.50%
Regional NSW  18,507 20,458 18,251 -10.80% -1.40%
Regional VIC 9,368 9,637 8,816 -8.50% -5.90%
Regional QLD 22,013 23,712 21,278 -10.30% -3.30%
Regional SA 1,868 2,066 1,868 -9.60% 0.00%
TAS 3,309 3,177 2,857 -10.10% -13.70%
Regional WA 4,761 5,013 4,602 -8.20% -3.30%
NT 2,987 2,946 2,617 -11.20% -12.40%
ACT 5,353 4,742 4,118 -13.10% -23.10%
Mainland Capital Cities 131,285 138,034 121,502 -12.00% -7.50%

 

Regional Labour Force

In December, the regional labour force expanded to 5,092,000, an increase of 0.8% from the previous month. The labour force measures all people employed or unemployed (and looking for work). While the regional labour force has experienced short-term fluctuations, the long-term trajectory remains upward, in line with regional population growth. It is also a positive sign that more people are engaging in the labour market. 

Regional Australia labour force size

Source: ABS Labour Force (detailed), RAI

 

The table below presents the regional labour force size by state and territory. Queensland has the largest regional labour force with 1,501,900 people, making up 47.9% of the state’s total labour force. Western Australia has proportionally the smallest regional labour force at 18.4%. For Tasmania, the Northern Territory and the Australian Capital Territory, the entire jurisdiction is classified as regional Australia.

State/Territory Regional Labour Force Size ('000) Percentage of total labour force (%)
NSW 1,474.10 31.3
Vic 827.1 20.8
Qld 1,501.90 47.9
SA 202.3 19.7
WA 317 18.4
Tas 296.3 100
NT 151.8 100
ACT 291.7 100
Australia 5,062.20 33.1

 

Regional Employed Persons

The number of employed people in regional Australia reached 4,911,000 in December, an increase of 1.1% from November. Employed persons rose faster than the growth in the labour force, a sign that more people are successfully matching with regional employment opportunities and reducing unemployment. 

Regional Australia employed people

Source: ABS Labour Force (detailed), RAI

Regional Australia Participation Rate

The regional labour force participation rate rose to 63.2% in December 2025, in line with the upward trend in the labour force. Labour force participation measures the labour force as a percentage of all working-age people (aged 15 and over). When smoothing out seasonal fluctuations, the annual moving average remains stable at 63.1%, indicating long-term stability in regional labour participation. 

Regional Australia Participation Rate

Source: ABS Labour Force (detailed) RAI

Regional Australia Unemployment Rate

The regional unemployment rate declined further to 3.5% in December, the lowest level recorded since the same time last December. Despite monthly variations, unemployment has generally remained at historically low levels, meaning there are fewer workers available to fill job vacancies.  

Regional Australia Unemployment Rate

Source: ABS Labour Force (detailed) RAI

Monthly Spotlight: Launceston City Council, Tasmania - Labour Market Case Study

The Launceston City Council covers 1,414 square kilometres and had a population of approximately 71,600 residents in 2024.

In December 2025, Launceston’ estimated labour force participation rate was 61.0%, higher than Tasmania’s average of 59.4%. The local unemployment rate stood at 4.4%, close to the state average of 4.3%. 

Across the broader Launceston and Northeast Tasmania (IVI) region, which includes Launceston and surrounding areas, 770 online job advertisements were posted in December. Consistent with seasonal patterns, job vacancies declined by 7.7% from November to December 2025 and were 10.7% lower than a year earlier. However, the region showed slightly softer downward momentum than Tasmania overall, which presented a steeper monthly decline of 10.1% and an annual decline of 13.7%. 

The top three most in-demand occupation groups for the Northeast Tasmania region were Medical Practitioners and Nurses (70), Sales Assistants and Salespersons (59) and General-Inquiry Clerks, Call Centre Workers, and Receptionists (57). 

Taken together, Launceston demonstrates a service-led and relatively stable labour market. As a key service hub for surrounding rural areas, the city plays an important role in healthcare, retail, and logistics sectors.  


Note: 

This report integrates data from two key sources: 

  • Job Vacancy Data: Regional job vacancies are sourced from the Internet Vacancy Index (IVI) which is derived from job postings on SEEK, CareerOne and Workforce Australia and provided by Jobs and Skills Australia (JSA). Vacancies are measured using IVI regions
  • Labour Market Indicators: Labour force size, employed population, unemployment rate and participation rate are sourced from the ABS Labour Force (detailed data) and measured using the ABS Greater Capital City Statistical Areas (GCCSAs).

While efforts have been made to align the definition of regional Australia across datasets, differences in geographic boundaries result in minor discrepancies. Users should be aware of these variations when interpreting the data:

  • For IVI data, regional Australia includes all IVI regions except Sydney, Melbourne, Brisbane, Adelaide, and Perth.
  • For ABS labour market indicators, regional Australia is defined as areas outside Greater Sydney, Greater Melbourne, Greater Brisbane, Greater Adelaide and Greater Perth (GCCSAs).

 1) Regional labor market information is also available using the RAI’s interactive online tool, the Regional Jobs Guide