Australia market insights
Takeaways from people2people's 2025 Report
Australia market breakdown
Key trends and insights
Australia’s employment market in 2025 is defined by recalibration and strategic restraint after several volatile years. While the post-pandemic hiring surge has settled, employers are now focused on long-term sustainability rather than short-term expansion. Across industries, there’s a clear shift from urgency to precision — companies are refining their workforce structures, prioritising productivity, and investing in skill development to future-proof teams. Candidates, meanwhile, are approaching the market with a renewed sense of realism. They value security, flexibility, and purpose but recognise that the leverage they once had in the tight 2022–2023 market has softened. This has created a more balanced environment where both employers and employees are reassessing what mutual value looks like.
Culturally, the Australian market in 2025 feels more grounded. Economic caution has encouraged organisations to focus inward — building stronger cultures, refining hybrid work practices, and rewarding loyalty. Many businesses are also turning to technology and data-driven HR strategies to enhance efficiency and better understand evolving workforce expectations. There’s a sense of steadiness replacing the unpredictability of recent years: hiring may be slower, but it’s smarter. As a result, Australia’s employment landscape is maturing into one that prioritises alignment, purpose, and adaptability — qualities that will shape its next cycle of growth.
2025 Australia Labour Market
4.3%
Unemployment Rate
66.9%
National Participation Rate
2.1%
National Inflation Rate
-11%
Annual National Job Ad Change
54%
Job Seeker Confidence Index
63%
Hiring Confidence Index
Australia job seeker sentiment
How engaged are people in today's job market?
Across Australia in 2025, job seekers are displaying a more measured and pragmatic approach to their careers. After a period of fluctuating confidence and economic adjustment, many Australians are focusing on job security, work-life balance, and alignment with company values rather than chasing rapid pay rises or multiple offers. Flexibility remains non-negotiable, but there’s a noticeable shift towards seeking meaningful, sustainable roles that provide growth and stability.
Candidates are also showing greater awareness of employer reputation — favouring organisations that invest in wellbeing, communication, and genuine culture over surface-level perks. Overall, Australia’s employment landscape feels more grounded: job seekers are clearer about what they want, and more discerning about where they choose to invest their time and talent.
74%
Active job seekers
23%
Passive job seekers
2%
Hesitant job seekers
3%
Inactive job seekers
Employment trends shaping Australia labour market in 2025
What key factors are driving talent retention in 2025?
Talent retention remains a key priority in today’s competitive job market. As workforce dynamics evolve, understanding what matters most to employees is essential. Focusing on factors such as career growth, management support, and work-life balance helps employers strengthen engagement and build lasting loyalty.
Why are you losing your staff in 2025?
Employee retention and resignation remain key challenges in today’s evolving workforce. Understanding why people leave and how to keep them engaged is essential for long-term success. As priorities shift toward career growth, culture, and leadership, businesses must adapt their strategies to retain talent. What’s driving resignations in 2025, and how can organisations better support and sustain their people?
What's the impact of forcing a return to the office?
As return-to-office mandates rise, businesses are increasingly concerned about their impact on morale, productivity, and retention. With flexibility now an expectation, finding the right balance between in-person collaboration and remote autonomy is vital. The challenge lies in making office returns work for both people and performance.
2025 Employment & Salary Report
Stay ahead of your market across Australia
Take a closer look at what’s driving hiring in your industry, from shifting employer priorities to the roles most in demand. This comprehensive report reveals the key trends shaping recruitment and workforce strategy this year, providing your business with a competitive edge in today’s uncertain labour market.
- Benchmark your company's attraction and retention strategies
- Find out what job seekers are looking for in 2025
- Identify emerging and current hiring and salary trends
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