What 2024 Taught Us About the Australian Job Market

What 2024 Taught Us About the Australian Job Market

The Australian employment market continues to navigate a landscape of challenges and opportunities as we approach 2025. With unemployment holding steady at 4.1% in October and employment rising by 15,900 jobs, the labour market demonstrates resilience amidst uncertainty. However, job vacancies have declined slightly, reflecting a complex interplay of factors in different sectors.

Skill shortages remain a significant concern, especially in essential industries such as healthcare, aged care, and education, which continue to face persistent demand. At the same time, sectors like hospitality and arts have seen a downturn due to the ongoing cost-of-living pressures. These dynamics highlight the nuanced nature of the job market, where some industries are experiencing growth while others face contraction.

What’s unique about the current labour market is the coexistence of declining vacancies and ongoing demand for skilled workers. Historically, economic fluctuations have tended to lead to fewer hiring needs across the board, but this isn’t the case for sectors critical to Australia’s infrastructure and wellbeing. Industries like construction and aged care continue to call for skilled labour, and government incentives, such as fee-free TAFE places, are a step in the right direction. However, experts agree that these measures alone are unlikely to bridge the gap completely. Attracting overseas talent and developing a more robust domestic training pipeline will be essential to ensuring Australia can meet future demands.

"We’re hoping for green shoots next year, economically speaking.”

Erin Devlin, Managing Director of people2people Victoria, recently hosted a discussion with Brooke Lord, Head of Advocacy and Policy at the RCSA, delving into the 2024 trends and the road ahead. Their conversation shed light on critical insights for job seekers and employers navigating the Australian job market.

Reflecting on the challenges of 2024, Brooke acknowledged, "It’s been a tough year. People are feeling it. We’ve seen job vacancies decline by about five percent between May and August, but it’s not all bleak." Despite this decline, the discussion highlighted the opportunities within industries still facing skill shortages.

RCSA’s role has been pivotal in supporting the industry through these fluctuations. Brooke elaborated, "We’ve been targeting learning and development opportunities where challenges exist, ensuring our members can respond to market conditions." This proactive approach has enabled recruiters and organisations to navigate significant legislative changes, such as the Closing the Loopholes Bill, which reshaped employment practices.

Erin emphasised the importance of maintaining flexibility in employment options, noting, "Understanding and highlighting the choice of job seekers—where temp and contract work complements their lifestyle—has been crucial." This adaptability ensures that job seekers retain autonomy while employers can access talent through innovative workforce strategies.

The conversation also explored how the broader economic context is shaping workforce needs. Brooke explained how some sectors, such as healthcare and education, will continue to face pressure due to Australia’s aging population and growing demand for specialised care. Conversely, industries like hospitality are feeling the pinch from tightening consumer spending. “We’re in a time of stark contrasts,” she noted, “with employers in certain fields struggling to find talent while others face reduced demand.” Erin added that understanding these industry-specific dynamics is key for candidates who want to position themselves strategically for new opportunities. This dual narrative of resilience and challenge paints a vivid picture of the employment market's complexity.

Looking ahead to 2025, Brooke expressed cautious optimism, stating, "We’re hoping for green shoots next year, economically speaking. However, persistent skill shortages in industries like healthcare and construction mean we must explore solutions domestically and internationally." With fee-free TAFE enrolments showing promise, there is hope that Australia’s workforce can meet growing demands.

Erin concluded with a focus on emerging skills, particularly in technology, remarking, "AI isn’t going to replace jobs, but those who know how to use AI effectively may well take the jobs." This underscores the importance of equipping the workforce with the tools to thrive in a competitive environment.

Practical Advice for Job Seekers and Employers
To stay ahead in the evolving Australian job market, here are key strategies:

Identify High-Demand Sectors: Focus on industries like healthcare, education, and technology where demand is persistent. Specialised skills in these areas can open new career pathways.

Upskill Strategically: Invest in learning opportunities, particularly in emerging technologies such as AI and automation, to enhance your employability in diverse industries.

Leverage Flexibility:  Temporary and contract roles provide a gateway to explore various industries and gain experience while maintaining work-life balance.

Adapt to Legislative Changes: Stay informed about employment regulations and leverage support from industry organisations like the RCSA to navigate complex changes.

Engage with the Market: Keep an eye on employment trends and maintain an active presence in the job market. Networking and building professional relationships can open doors to unexpected opportunities.

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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.