Labour force figures released last week show 37,400 new jobs were created in the month of December.
The jobs market strengthened towards the end of 2014, according to the Australian Bureau of Statistics (ABS).
Despite the good news, industry body Consult Australia said its 2014 Industry Survey shows it is still a tight job market in Queensland.
Consult Australia's state manager for Queensland, Stacey Rawlings, said an increased focus on price competitiveness is squeezing firms who are struggling to build their pipelines of work, leading to headcount reductions at many larger firms.
Rawlings said on average, firms had only three to six months of secured work for less than half their workforce and less than one to three months of secured work for more than 80 per cent of their workforce.
"With the short pipeline of work, retention of qualified personal is a huge concern," she said.
The survey found that more than 40 per cent of firms have continued to decrease in size over the last 12 months – most by nine to16 per cent.
This is a further reduction on top of the previous year’s average reduction of 30 per cent. Most of the recent reductions have come from firms employing over 100 people.
"Some of the state’s best engineers, architects and other built environment professionals are relocating interstate or overseas, and getting them back here when the pipeline of work eventually picks up will cost the state more than trying to retain them now," she said.
"Whichever party is elected to government on January 31 will need to work to stop this ever growing tide, through a wide and varied range of strategies, to give Queensland businesses a new competitive advantage."