2025 Q2 - Hiring Market Snapshot
"The market is really tough right now".
It's not a cop-out. It's an accurate description of the complex situation we're floundering in at the moment in Australia.
Today, recruiters are operating in a high-pressure, low-yield market. Jobseekers might be out there... but your ideal candidate probably isn’t one of them. If they are looking, they’re being extremely selective and likely getting contacted directly by 3 recruiters a week.
Here’s the really good news
Great recruiters are up for the challenge. Actually? We're loving the challenge. Recruitment today is speaking directly to the reason many of us got into this career in the first place.
This market is forcing us to think smarter. We’re flexing our creative muscles, building new sourcing strategies, overhauling job ads, crafting employer narratives, and leaving icky 90's recruitment tactics firmly in the past.
To be successful:
👉 We need business buy-in.
👉 We need hiring managers to trust the process.
👉 And we need teams to understand: we’re not flipping everything on it's head purely because we want to. We’re doing this because we have to.
Let’s take a look at what we’re really up against:
Unemployment Is Low
Australia’s unemployment rate sits at 4.1% as of March 2025 (ABS).
Recruiters are spending more time headhunting passive talent. The candidates we need aren’t actively looking, and when they are, they’re highly selective.
Talent Competition Is Ruthless
38% of employers cite "lack of suitable applicants" as their biggest hiring challenge (Jobs and Skills Australia).
It’s not just about finding the right person—it’s about getting to them first, making a compelling offer, and keeping them engaged through the process.
Recruiters aren’t choosing between candidates. More often, we’re choosing between:
Educating hiring managers on compromise, or
Watching a great candidate walk away mid-process
Skill Shortages Continue to Bite
33% of occupations are officially listed as being in shortage, especially in health, education, trades, and tech (Jobs and Skills Australia).
Recruiters are on double duty: sourcing, and coaching hiring managers to think laterally—looking at exploring transferable skills, adjacent industries, and untapped talent pools.
Retirements Are Outpacing Replacements
The average retirement age is 65–66, and an ageing workforce is steadily exiting the labour market (ABS).
The result? A growing gap in mid-to-senior talent, with fewer experienced professionals actively looking. Those who are open to moving need more than just a standard job ad—they need a compelling reason to leave.
Gen Z Are Entering, and They Want Different Things
By the end of 2025, Gen Z will make up 30% of the workforce. 35% say flexibility is a top priority, and many value mission, mental health support, and learning opportunities over salary alone.
Recruiters are not just selling roles—they’re selling company culture, work-life balance, and career growth. And they need internal stakeholders to live up to what’s promised.
What Employers Are Doing to Respond
Reworking their EVP: More companies are highlighting their mission, flexibility, and culture rather than just salary.
Offering more flexibility: Hybrid is the minimum; full flexibility is becoming a competitive advantage.
Looking beyond experience: Hiring for potential, adaptability, and growth mindset rather than rigid “tick every box” criteria.
Investing in internal development: Upskilling and career pathing are now seen as essential retention tools—not perks.
Recruiters are advocating for all of the above—but they need leadership buy-in to make it real. The companies adapting the fastest are the ones winning the talent game.
When your recruiter says “the market is tough”, they’re not being difficult. They’re just being honest.
Hiring today isn’t about finding someone who ticks all the boxes. It’s about moving fast, thinking smart, and showing up as an employer people actually want to work for.
