Victoria market insights
Takeaways from people2people's 2025 Report
Victoria market breakdown
Key trends and insights
Victoria’s employment market in 2025 is characterised by renewal and recalibration. After a period of heightened cost-consciousness and slowed hiring, businesses are gradually returning to growth planning — but with a more strategic lens. Organisations across Melbourne and regional centres are reassessing the skills they need for the future, making targeted hires and investing in development rather than broad expansion. Increased candidate availability is helping employers regain selectivity, though competition remains fierce for niche skill sets.
Culturally, Victorian workplaces are re-centering on stability, wellbeing, and clear career pathways. Employees are more discerning, seeking roles that offer flexibility, purpose and leadership they can trust. The tone across the state is one of thoughtful progression: not a rapid rebound, but a steady rebuilding of teams and capability as organisations position themselves for longer-term resilience and innovation.
2025 Victoria Labour Market
4.7%
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
Victoria job seeker sentiment
How engaged are people in today's job market?
Across Victoria in 2025, job seekers are entering the market with renewed energy and ambition, yet with a more refined sense of what truly matters. Many are ready to explore new opportunities, but they are prioritising roles that offer flexibility, meaningful work, and environments where they can grow. Culture and leadership play a significant role in their decisions, as workers look for employers who are transparent, supportive, and aligned with their values.
Victorian candidates are less interested in rapid job hopping and more focused on finding positions that contribute to long-term career satisfaction. This intentional mindset is shaping a market defined by discernment and purpose — one where job seekers are confident, future-focused, and selective about where they invest their skills and time.
77%
Active job seekers
20%
Passive job seekers
1%
Hesitant job seekers
2%
Inactive job seekers
Employment trends shaping Victoria 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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