“The market is busy!” but what does that mean for your business?
One of our most frequently asked questions by clients is “what’s the market like?”
For candidates, they are keen to know about job opportunities – and not just how many new opportunities are around but also assessing the risk factors of moving to a new role in an unstable market.
For clients, the question is often a temperature check on whether their competitors are moving, whether their employees might be approached, and even a look at the economy. More jobs available means more confidence, right?
During 2024, the recruitment market became stagnant to say the least. It wasn’t a great year in terms of growth roles and whilst there were plenty of hires made, they were carefully considered and through necessity or replacement.
Cut to 2025 and the year has taken off quickly with more companies looking to hire newly created growth roles. January can sometimes have a slow start in Australia, with many people taking time over the summer holidays to reset.
At Ambition and AccountAbility, we have seen this year start quick off the mark. More businesses are looking to hire newly created roles due to growth plans, showing confidence in the job market. If we look at our data, we have picked up 23% more jobs in January & February 2025 with one week left to go, compared to January and February 2024.
This all sounds positive, and you will hear recruitment consultants near and far talking about how “the market looks good,” but what does this mean for your team?
Economic factors
Last week the Reserve Bank of Australia (RBA) released a statement confirming its decision to lower the cash rate to 4.10%, and with speculations of more rate cuts to come in 2025, this is a positive sign.
The knock-on effect of this for the recruitment market will mean businesses will have more money to invest in growth projects, particularly transformation, which have been on pause for the past few years.
Retention and competition
For candidates this will mean more opportunities. Fresh and exciting projects to push their skills.
More stability and confidence in the job market equals more movement and willingness to consider new opportunities.
For clients this will mean, not only hiring and searching for growth roles in a competitive market but planning your retention and replacement strategies will also be key.
Candidates’ expectations
If we look back to the last buoyant job market in 2022, we saw salaries skyrocket. The competition for top talent meant candidates could demand $20-30K above their usual market rate.
Salaries have steadied out since then so we don’t predict they will skyrocket again; however, it is an important factor to consider and hiring managers need to be clear about what they can offer as a whole package.
The main pull factor for new talent and to retain existing talent will be the opportunity to work on new projects. Those candidates that have been “playing it safe” will have more job opportunities to choose from.
Money alone may not help you retain your staff so, thinking about development opportunities, flexibility, company benefits and perks will help you to remain a competitive option.
Culture factors
As mentioned above, retention strategies will become key to any growth plans. Employees are looking for development opportunities, feeling valued and purpose within their roles. Not to mention a competitive salary and benefits package.
Working on your Employee Value Proposition (EVP) will help you to attract new talent to your team and will add to your retention strategy for your existing employees.
Think of your EVP as future proofing and ingrain it in your culture. If you can clearly articulate this to your recruiter, it will help them to sell the role to any potential new hires.
Speed of the market
It's still a client-led market, that means that clients are being picky with the candidates they hire. The challenge with this is that a client may interview someone who is a 9/10 candidate but not feel pressured to make any decisions straight away, leaving the candidate waiting for an answer.
This is an issue because:
The client is gambling that they will find a candidate that is better, even though the one they have in process would be a great option.
Their employer brand is negatively impacted as candidates still expect companies to move quickly with interview processes. To be put on hold whilst the employer continues to search the market is like being told the person wants to wait to date other people before coming back for a second date.
Summary
In conclusion, the job market of 2025 is already looking positive from a growth and economic perspective. However, any change in market conditions requires us to review our strategies and adapt to the new opportunities and challenges.
For businesses looking to grow their teams, the confidence in the market will mean more available candidates but also more job opportunities to compete with.
Retention and replacement strategies will play a big role in maintaining your current team, with salaries not always being the deciding factor. Making sure there are opportunities for career development and working on your EVP will help you to remain a competitive option.
Having an efficient and seamless interview process will always act in your favour. Looking at ways you can speed up the process whilst retaining the quality is key.
Written and edited by Gemma Crolla, Digital Marketing Manager, Ambition Group Australia. Gemma has been working within the recruitment industry for over 15 years. Researching, writing and consulting with clients in professional & corporate services.
