Crisis in Australia’s Job Market: Surge in Applications, Decline in Opportunities

Australians in the job market are facing a challenging period, with fresh data revealing that job applications have nearly doubled (44 percent) over the past year.

In contrast, job creation fell 5.4 percent in 2024, according to recruitment platform JobAdder.

The surge in job seekers has intensified competition, with recruitment agencies seeing an average of 41 candidates per position in the last three months of 2024.

Despite this flood of applications, the number of jobs available per recruitment agency has dropped by 5.6 percent, marking the year’s lowest point.

Martin Herbst, CEO of JobAdder, noted a fundamental shift in hiring patterns.

“Recruitment is no longer about attracting candidates but managing high volumes and identifying quality talent. Agencies must rethink their hiring strategies to handle this evolving landscape efficiently,” he said.

The Australian Bureau of Statistics (ABS) also reported a slight uptick in unemployment, rising from 4 percent in December to 4.1 percent in January. The increase was linked to seasonal trends, with more individuals waiting to start or return to work.

“As in the past three Januarys, we again saw more people than usual who had a job but were waiting to start or return to work,” said Bjorn Jarvis, ABS head of labour statistics.

Temporary Jobs Dominate as Businesses Play Safe

Temporary and contract roles now account for 80 percent of all placements in 2024, up from 78 percent in 2023 and 74 percent in 2022. Meanwhile, permanent job placements have continued to decline, now making up just 20 percent of all new hires.

Herbst attributed this shift to economic uncertainty.

“The job markets reflect broader economic conditions, and 2024 has been a challenging year for Australia. Employers are hesitant to overcommit to new hires while relying on temporary staff to manage fluctuating workloads,” he said.

The dominance of temporary roles presents both challenges and opportunities. While it offers flexibility to employers, job seekers struggle with the instability of short-term contracts.

Liam Wolter, a 22-year-old job seeker, shared his frustration after applying for over 300 jobs without success.

“Most of the jobs I’ve had in the past weren’t great and didn’t last long, even though I tried to stick them out. Now, I’m looking for something more stable where I can grow and feel valued,” he said.

Wolter, currently studying barbering at TAFE, relies on welfare and support from his mother while searching for work.

“If it weren’t for her, I’d most likely be on the street,” he said.

“Not having a steady income makes it incredibly stressful to keep up with bills and daily expenses.”

Job Boards Remain Popular Despite Lengthy Hiring Delays

Despite significant placement time delays, job boards dominate hiring channels.

Applications through job boards and ad channels accounted for 79 percent of recruitment agency hires in Q4 2024, up 2 percent from the previous year.

However, recruitment agencies took 15.9 days longer to place candidates in permanent roles sourced from job ads, averaging 42.7 days to fill positions.

Meanwhile, proactively sourced candidates are placed 1.6 times faster in permanent roles and 5.6 times faster in temporary positions compared to job board applicants.

Yet, reliance on internal databases has declined, with only 21 percent of hires in Q4 2024 coming from these sources.

Herbst advised recruiters to rethink their strategies.

“With AI-assisted applications, agencies are being inundated with applications. Sifting through job applications from underqualified candidates wastes valuable time and resources.”

Treasurer Defends Government’s Economic Record

The Reserve Bank of Australia (RBA) forecasts that the unemployment rate will average 4.2 percent in the June quarter and remain at that level through 2025.

At the same time, the participation rate has reached a record high of 67.3 percent as more Australians re-enter the workforce.

Some of the employment shifts have disproportionately affected migrants.

Robin Venkat, 44, who moved to Canberra from London, has struggled to find a job for over six months.

“Some ten families moved into the suburb along with us, and most of them have not been able to find a job,” he said.

He pointed to post-pandemic migration surges and an influx of students willing to work for cash at lower rates, making even gig economy jobs harder to secure.

Treasurer Jim Chalmers, however, has remained optimistic about Australia’s economic position.

“We have got the lowest average unemployment rate of any government in the last 50 years,” Chalmers said at a press conference in Brisbane on Feb. 25.

He credited the government’s economic management for balancing inflation control with maintaining employment levels.

“What makes Australia unusual is we’ve been able to get inflation down, wages up, and keep unemployment low,” he said, comparing Australia’s situation to New Zealand, where unemployment has reached 5.1 percent and the economy has slipped into recession.

With job creation slowing, hiring trends shifting, and competition intensifying, Australia’s labour market remains a battleground for job seekers.