Australian workers will find it harder to get their next role, as the jobs market continues to cool.

In its latest report, employment site Seek said job ads fell by 0.8 per cent in the month of May for a 4.5 per cent decline over the previous year.

Meanwhile, Australian workers face stiffer competition with applications per role up 3.6 per cent over the month, or 5.5 per cent over the year.

Seek chief economist Blair Chapman says hiring across the board is slowing, as job volumes soften in just above every region and across every sector.

“While the monthly decline is not especially sharp, it does suggest employers are continuing to act cautiously in the current environment.” Mr Chapman said.

“The recent moderation in monthly advertised salary growth likely reflects a more challenging environment for businesses.”

Mr Chapman said cost-of-living pressures were also weighing on businesses, leading to fewer roles being advertised.

“Lower confidence, higher costs and increased uncertainty are weighing on hiring conditions, meaning employers are still lifting pay, but doing so more cautiously. ”

In a further negative sign for workers, the amount of money employers are willing to pay per role has also dropped.

In May employers were offering just 0.3 per cent more over the month, while annual growth rate is a more steady 4.1 per cent.

The latest data from Seek follows an announcement from the Reserve Bank of Australia to keep the cash rate on hold at 4.35 per cent.

This was a widely expected move following three rate hikes in three meetings to start the year.

The RBA acknowledged inflation was simply “too high” and the bank would work to reduce it back to the 2 to 3 per cent target range, even if it meant higher interest rates.

Governor Michele Bullock was asked during a press conference on Tuesday about the jobs market where she confirmed it could slow if inflation remains high.

“We always try to keep the jobs market in mind when we are trying to bring inflation back down and that has been a hallmark of what the board has tried to do ever since the inflation peak in 2022-2023,” she said.

“It is true though unless we get inflation down ultimately that won’t be good for the jobs market because if inflation rises we will have to raise interest rates and that will be bad for jobs.”

Australia’s job market has been remarkably resilient over the last three years, in part due to lower interest rates compared to the rest of the developed world.

But in April, the unemployment rate showed signs of cracking.

The number of employed people fell by 18,600 in April, while the number of unemployed people rose by 33,000.

The number of unemployed people looking for full-time work increased by 11,000, and unemployed people looking for part-time work increased by 22,000.

“I don’t think we have lost sight of the jobs market – we have still got it in mind – but at the moment it is much more important that we get inflation down because if we don’t get it down we are going to have to respond more strongly and that will be worse for the labour market,” Ms Bullock said.

“I can’t stress this enough, inflation is really bad for everyone and it is really bad for the most vulnerable in the community.”