13Mar

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arsjoyofsuccessRecruitment Outsourcing & RPO Insights

For several years after the pandemic, Australia experienced a labour market that strongly favoured employees. Companies struggled to fill roles, salary expectations rose rapidly and candidates often received multiple job offers.

However, recent hiring trends suggest that the market may be shifting again.

Job advertisements are declining, competition for roles is increasing and hiring timelines are getting longer. These developments are prompting many recruiters and job seekers to ask an important question: Is Australia moving back to an employer-driven job market?

The answer is not entirely straightforward. While the labour market remains relatively strong compared with historical levels, several indicators suggest that the balance between employers and candidates is beginning to change.

Understanding these trends is essential for both organisations planning recruitment strategies and professionals navigating their careers.

Key Takeaways

Job advertisements in Australia have declined over the past year.
Applications per job posting are increasing as competition rises.
Some industries are slowing hiring while others still face talent shortages.
The labour market appears to be normalising after the post-pandemic hiring surge.

Understanding Employer-Driven vs Candidate-Driven Markets

Labour markets generally oscillate between two conditions.

Candidate-Driven Job Market

This occurs when the demand for talent exceeds the available supply. In such conditions:

Companies compete aggressively for candidates
Salaries and benefits increase quickly
Job seekers receive multiple offers
Recruitment cycles become faster

Australia experienced this environment during 2021–2023, particularly in sectors such as technology, healthcare and engineering.

Employer-Driven Job Market

In contrast, an employer-driven market occurs when the number of candidates exceeds the number of available roles.

This typically leads to:

Higher competition for each job
Longer hiring processes
Employers having stronger negotiating power
Reduced salary pressure

Recent labour market signals suggest Australia may be gradually moving toward this phase.

Signs Australia’s Hiring Market Is Cooling

Several indicators across employment data, job platforms and economic reports point toward a moderate hiring slowdown.

Importantly, this does not mean the labour market is collapsing. Instead, it appears to be normalising after an unusually tight hiring cycle.

1. Job Advertisements Are Declining

One of the clearest signs of a changing labour market is the decline in job postings.

According to Jobs and Skills Australia, online job advertisements fell 4.2% nationally in August 2025, with decreases across most occupations and states. (Jobs and Skills Australia)

Over the past year, job ads have dropped by more than 12%, reflecting a cooling in labour demand as economic conditions stabilise. (Jobs and Skills Australia)

Other labour market data shows a similar trend. SEEK reported that job advertisements declined 18.6% year-on-year during parts of 2024, highlighting a broader slowdown in hiring activity. (Human Resources Director)

Despite these declines, job ads remain significantly higher than pre-pandemic levels, indicating that the labour market remains relatively resilient. (Jobs and Skills Australia)

2. Applications Per Job Are Increasing

As job postings decline, competition for available roles is rising.

SEEK data shows that applications per job advertisement increased by 8.5%, indicating that more candidates are applying for fewer positions. (Human Resources Director)

This pattern is common when labour markets begin to shift toward employer-driven conditions.

Higher application volumes often lead to:

longer hiring processes
stricter candidate screening
increased use of recruitment technology

For recruiters and hiring managers, this means a wider pool of candidates to choose from.

For job seekers, however, it means stronger competition.

3. Unemployment Remains Low but Is Slowly Rising

Another important factor shaping the labour market is the unemployment rate.

Australia’s unemployment rate has remained relatively low at around 4.0% to 4.3%, which is still considered close to full employment. (Horner Recruitment Services)

However, small increases in unemployment combined with declining job advertisements suggest that labour demand is easing.

Economic uncertainty, interest rate pressures and slower business expansion are all contributing to cautious hiring behaviour among employers.

What Job Seekers Are Saying: Insights from Online Communities

Official data often lags behind real-time experiences in the job market. Online forums and communities can provide useful signals about how candidates perceive hiring conditions.

Discussions on Reddit reveal a growing sentiment that the job market has become more competitive.

In one discussion about the Australian hiring market, a user noted:

“Competition is intense… targeting matters more than ever.” (Reddit)

Another thread discussing labour market trends highlighted a decline in job ads and increased competition:

“Hiring is slowing… competition is increasing.” (Reddit)

In recruitment discussions, some users report sending dozens of applications before receiving interviews, reflecting the growing challenge of standing out in crowded applicant pools. (Reddit)

While Reddit discussions are anecdotal, they often mirror broader labour market data.

Industry Hiring Trends Across Australia

The hiring slowdown has not affected all sectors equally. Some industries are experiencing sharper declines than others.

Data from SEEK shows that several sectors recorded significant drops in job advertisements, including:

Information and Communication Technology (ICT)
Administration and Office Support
Hospitality and Tourism (Human Resources Director)

These industries expanded rapidly during the post-pandemic recovery and are now experiencing a period of adjustment.

At the same time, certain sectors continue to demonstrate steady demand.

These include:

healthcare and social assistance
logistics and supply chain roles
infrastructure and construction

Labour shortages in specialised roles also remain a challenge despite the broader slowdown.

The Rise of “Ghost Jobs”

Another trend influencing perceptions of the job market is the phenomenon known as ghost job postings.

Ghost jobs refer to positions advertised by companies without immediate hiring intentions. These listings may exist to build candidate pipelines, test market salaries, or maintain company visibility.

Research suggests that up to 21% of job advertisements may fall into this category. (arXiv)

For job seekers, this can create frustration because it increases the number of advertised positions without necessarily increasing actual hiring opportunities.

For employers, it can serve as a strategic talent sourcing mechanism.

What the Hiring Slowdown Means for Employers

If the labour market continues shifting toward employer-driven conditions, companies may gain several advantages.

Larger Candidate Pools

With more applicants per role, employers can evaluate a wider range of candidates and select individuals who best match organisational needs.

Greater Hiring Selectivity

Companies may become more selective about qualifications, experience and cultural fit.

Reduced Salary Inflation

During the candidate-driven market of 2021–2022, salary expectations increased rapidly. A more balanced market may help stabilise compensation growth.

However, employers should be cautious.

Certain skill shortages remain severe, particularly in areas such as cybersecurity, cloud engineering and advanced technology roles.

What This Means for Job Seekers

For candidates, the shifting labour market may require a different approach to job searching.

Strategies that worked during a candidate-driven market may be less effective now.

Job seekers may need to focus more on:

Specialised Skills

Candidates with niche expertise remain in high demand.

Tailored Applications

Generic applications are less likely to stand out when hundreds of candidates apply for the same role.

Professional Networking

Referrals and industry connections can significantly improve the chances of securing interviews.

The Future of Australia’s Job Market

Although hiring activity has slowed, most economists do not expect a dramatic collapse in Australia’s labour market.

Several factors continue to support employment demand.

These include:

population growth and migration
infrastructure investment
ongoing digital transformation
healthcare sector expansion

At the same time, economic conditions may limit rapid hiring expansion in the short term.

Labour markets tend to move in cycles. After a period strongly favouring candidates, a more balanced environment is now emerging.

Hiring Market Snapshot: Australia

Indicator	Trend
Job ads year-on-year	↓ 12%–18%
Applications per job ad	↑ increasing
Unemployment rate	~4.0–4.3%
Job ads vs pre-pandemic	↑ ~25% higher

Sources: Jobs & Skills Australia, SEEK, labour market reports. (Jobs and Skills Australia)

Conclusion-

Australia’s labour market is not collapsing, but it is clearly evolving.

Declining job advertisements, rising application volumes and cautious hiring strategies suggest that the labour market is gradually shifting away from the extreme candidate-driven environment seen after the pandemic.

For employers, this transition may bring greater hiring flexibility and access to larger candidate pools.

For job seekers, however, the environment may become more competitive, requiring stronger skills, clearer positioning and more strategic job search approaches.

Ultimately, the Australian labour market is likely entering a period of rebalancing rather than dramatic contraction.

Companies and professionals who understand these changes will be better positioned to navigate the next phase of the employment cycle.

FAQ: Australia’s Changing Job Market

Is the Australian job market slowing down?

Australia’s job market is showing signs of moderation rather than a sharp slowdown. Job advertisements have declined year-on-year and competition per role is increasing. However, unemployment remains relatively low at around 4%, indicating that the labour market is stabilising after the strong hiring surge seen in 2021–2023.

What is an employer-driven job market?

An employer-driven job market occurs when the number of job seekers exceeds the number of available roles. In this environment, employers typically have greater negotiating power, hiring processes become more selective and competition among candidates increases for each open position.

Why are job ads declining in Australia?

Job advertisements in Australia have declined due to several factors, including economic uncertainty, rising interest rates and cautious business expansion. Many companies are focusing on improving productivity rather than increasing headcount, which has resulted in fewer new job postings across several industries.

Are employers gaining more power in hiring decisions?

Employers are gradually gaining more leverage as job postings decline and applications per role increase. While the labour market remains relatively strong, the balance between employers and job seekers is becoming more even compared with the candidate-driven hiring environment seen immediately after the pandemic.

Which industries in Australia are seeing slower hiring?

Technology, administration and hospitality sectors have experienced some of the largest declines in job advertisements. However, industries such as healthcare, construction and logistics continue to experience talent shortages and steady hiring demand despite broader labour market changes.