HR Market Update: Employment Stability and Workforce Mobility in 2025

As we move further into 2025, the employment landscape across Australia and New Zealand continues to evolve, with fresh data revealing notable shifts in both employer and job seeker sentiment. With unemployment holding steady and underemployment dropping to its lowest level since August 2008, the job market is showing signs of resilience despite broader economic uncertainties.

Australia's job posting index remains 52% above the pre-pandemic baseline, a clear indication that demand for talent remains strong. While there has been a modest slowdown in employment growth, vacancies remain high, with over 328,000 job openings recorded earlier this year—a 4.5% decline from late 2024 but still 44.5% above February 2020 levels.

At the same time, the hiring confidence index has dipped slightly to 63%, reflecting a small drop in employers' optimism about finding suitable candidates. On the flip side, job seeker confidence has also declined, dropping eight percentage points to 54%. This cautious optimism, shared by both sides of the hiring equation, paints a picture of a market that is adjusting to new realities rather than retreating.

"Unemployment remains steady, but underemployment is at a historic low."

Kaajal Khelawan, HR Manager and Operations Lead, highlights the significance of the underemployment drop. "That means more people are working as many hours as they want, which is a great sign," she notes. This indicates an improving match between worker availability and employer demand.

Juma Mrisho, Talent Acquisition Business Partner, points to ongoing strength in job listings. "Job vacancies are still significantly elevated compared to pre-COVID levels," he explains, reinforcing the view that despite shifting conditions, opportunities remain abundant for job seekers.

Suhini Wijayasinghe, Head of HR Solutions, adds perspective on job seeker behaviour. "Nationwide, seventy-four percent of job seekers are actively looking for new opportunities, while twenty-two percent are passive but open to the right role," she says. The numbers show a highly mobile workforce, with only one percent hesitant to move and just three percent inactive.

While employer confidence has softened slightly, the fact that three-quarters of job seekers are actively engaged suggests the market remains dynamic. Businesses that are clear, fast-moving, and transparent in their recruitment practices are likely to continue attracting top talent.

For both Australia and New Zealand, the focus in 2025 appears to be on alignment—matching available roles with the right candidates at the right time. With underemployment falling, job ads still elevated, and a mobile workforce, there is much to be optimistic about. The key challenge lies in bridging the gap between employer expectations and job seeker needs in an evolving employment market.