The impacts of the pandemic on recruitment

Mark Smith • March 16, 2022

Recently, our Group Managing Director Mark Smith was interviewed about the impacts the pandemic has had on recruitment as well as what we can expect to happen in the employment market in the coming years. 

Is recruiting an in-demand field? I.e. Do we need more of them? 
 
Yes, recruitment consultants, whether working internally for a company or with agencies, are definitely in short supply. In 28 years in the industry, I have not seen demand for recruiters at this level: the combination of a tight labour market, the pandemic recession and restrictions on the supply of skilled recruiters from overseas has created a perfect storm for the industry. Agencies are seeing demand from their clients at extremely high levels. 

Rationalisation of the industry in 2020 because of COVID’s first wave saw agency recruitment teams decrease in size. Now the industry is scrambling to increase headcount through training, graduate programs or enticing experienced recruiters to move. In the past, the Australian industry has benefited from a large number of UK and Irish recruiters making the move down under. With border restrictions, the supply of this experienced recruitment talent has been turned off and many expat recruiters who relied on this as their own recruitment and training strategy have had to explore new ways to meet their own demand for recruitment consultants. 


I'm wondering if there's predictions on what will change given, we are getting closer to full employment - does that mean employers are turning more to recruiters (and hence, more job/career opps for recruiters themselves).
 
Full employment is a great thing and the industry welcomes this. I would suggest that the demand for recruiters is less about the level of employment and more about labour mobility and hesitancy to change roles as well as limited access to talent from overseas. 

In the past, many organisations could meet their own demand by using a few effective channels - job boards and agencies for example. At present, the number of applications being received for every job ad placed has diminished considerably. This is not because we have full employment here, rather it’s because candidates are simply not looking to make a change. Hesitancy, as a result of the instability created by the pandemic, has resulted in many people simply putting off their search for now; hence the idea of the great resignation where pundits believe this pent-up market movement will occur in 2022. Personally, I don’t think this will happen. 

The demand for agency and internal recruiters is the result of Australian employers seeking more channels to secure talent, whether through external recruitment providers or internal teams. Organisations are developing their own recruitment teams or turning to expert agencies, because methods that were effective in the past are less reliable now. 

 

Is the field changing? And how? (ie: how is it different to pre COVID, how is it changing/set to change in the next few years? 
The recruitment industry is changing, without a doubt. The industry is resilient and has changed remarkably over the years: I remember the days of having to post your resume to an agency and recruiters presenting a shortlist of three candidates in person to clients. These days are long gone. 

The changes brought on by the pandemic are substantive. Virtual interviews and video applications are the norm. Remote work is also now ubiquitous and will impact the way we work and what job seekers value in a job. While these are all positive changes, the benefits and costs of these changes are yet to be truly realised and understood. 

The recruitment industry has a very strong future. There is now a much better understanding of our value as an industry when it comes to accessing and securing talent, even more so because recruitment is about building long-term relationships with job seekers. 

Find the job you love I Find the right talent
Get in touch with people2people

Australia   I   United Kingdom

In business since 2002 in Australia, NZ, and the United Kingdom, people2people is an award-winning recruitment agency with people at our heart. With over 12 offices, we specialise in accounting and finance, business support, education, executive, government, HR, legal, marketing and digital, property, sales, supply chain, and technology sectors. As the proud recipients of the 2024 Outstanding Large Agency and Excellence in Candidate Care Awards, we are dedicated to helping businesses achieve success through a people-first approach.



Share insights

Recent articles

By Leanne Lazarus April 23, 2025
A strong safety culture is critical to reducing risk and promoting wellbeing in Australian workplaces. With 40% of workers exposed to moderate to high psychosocial risks, organisations must move beyond basic compliance to foster environments where employees feel genuinely safe and supported. In this blog, people2people’s Leanne Lazarus speaks with legal and safety experts Jonathan Mamaril and Nettie Herselman on how businesses can embed safety-first thinking into their culture. Discover practical tips for leadership, internal compliance, and strategic planning to build a resilient, engaged workforce. Is your organisation doing enough to protect both the physical and psychological safety of its people?
By Mark Green April 9, 2025
With 68% of Australian workers worried about potential redundancies, job security is now a top priority—especially in tech sectors across NSW and WA. In this blog, people2people’s Mark Green explores how employee preferences have shifted from salary-driven goals to long-term stability. As uncertainty grows, businesses must adapt by fostering transparent communication and building trust. We also share essential tips for leaders navigating redundancy conversations with empathy and strategy. Want to know how to retain top talent and protect your employer brand during uncertain times? Discover how to support your workforce and strengthen loyalty in today’s cautious job market.
By Mark Green April 7, 2025
As return-to-office mandates rise across Australia, many leaders face the challenge of balancing productivity with employee preferences. In this blog, Mark Green from people2people and Maja Paleka from MPC unpack the drivers behind these mandates, their impact on engagement and retention, and why forcing full-time office returns may backfire. With hybrid work models proving effective for many, forward-thinking businesses are seizing this moment to attract top talent and build trust-based cultures. We also share practical tips for leaders navigating this shift in 2025. Wondering how to future-proof your workplace without losing your best people? Read on to find out more.
By Suhini Wijayasinghe March 31, 2025
Millennials are now leading teams made up of both older and younger generations—but how do they bridge the gap between Baby Boomer values and Gen Z expectations? In this blog, we explore leadership in a multigenerational workforce with insights from Ramp Fitness co-founder Matthew Papalo. From building scalable systems to fostering community and wellbeing, discover how modern leaders are adapting to new workplace demands. If you're a millennial manager (or aspire to be one), this is your guide to leading with resilience, empathy, and innovation. Want to know the key to staying ahead of the curve in 2025 and beyond?
By Aiden Boast March 26, 2025
Feeling stuck in your job? You’re not alone—60% of workers are staying in roles longer than they’d like due to financial concerns and fear of instability. Yet, 66% believe a career change could make them happier. In this blog, people2people’s Aiden Boast unpacks recent data revealing why so many professionals are hesitant to move on, despite growing demand for skills-based hiring and flexible work options. Learn practical tips for overcoming career stagnation, leveraging your transferable skills, and taking the first steps toward a more fulfilling role. Could now be the perfect time to rethink your career path? Read more to find out.

Latest Media Features


Get in touch

Find out more by contacting one of our specialisat recruitment consultants across Australia, New Zealand, and the United Kingdom.

Contact us