Hire Note’s Overview of Key Findings
The latest Recruitment Experiences and Outlook Survey (REOS) by Jobs and Skills Australia (JSA) surveyed around 800 employers nationwide to gauge recruitment activity, hiring difficulty, and staffing expectations. The September results show a cautiously optimistic labour market, with recruitment activity trending upward and employers reporting easing hiring challenges compared to last year.
1. Recruitment Activity
- National recruitment rate: 51% of employers were recruiting, up 1 percentage point from August and 6 points higher than a year ago.
- Regional differences:
- Capital Cities: 50% (down 2 points month-on-month, but up 9 points year-on-year)
- Rest of State areas: 55% (up 7 points month-on-month, up 4 points year-on-year)
- Trend: Metropolitan hiring has strengthened significantly over the past 12 months, but regional markets experienced a sharper month-to-month rebound.
Interpretation: Recruitment activity is rebounding after earlier volatility, particularly outside metropolitan centres. This suggests renewed hiring confidence but highlights shifting regional dynamics.
2. Recruitment Difficulty
- 45% of recruiting employers reported difficulty filling roles, up 5 points from August, but down 7 points year-on-year.
- Difficulty remains far below the record high of 75% in July 2022.
- By area:
- Capital Cities: 44% (up 7 points from August, down 1 point YoY)
- Rest of State: 46% (up 1 point from August, down 16 points YoY)
Interpretation: Recruitment difficulty rose modestly in September, driven mainly by metropolitan employers. However, the long-term trend continues downward, indicating that candidate shortages—while still present—are less acute than in previous years.
3. Staffing Outlook (Next 3 Months)
- 24% of employers expect to increase staff in the next quarter — down 1 point from August, but up 2 points from September 2024.
- Capital Cities: 24% (down 3 points month-on-month)
- Rest of State: 26% (up 4 points)
Interpretation: Short-term hiring intentions dipped slightly, particularly in metropolitan areas, but optimism remains higher than a year ago. This signals a more stable market rather than one experiencing expansion.
4. Drivers of Recruitment
- Staff turnover remains the main driver of hiring activity:
- 58% of employers recruited due to turnover only.
- 31% recruited to fill new positions only.
- 11% recruited for both new and replacement roles.
Interpretation: The majority of recruitment remains replacement-based, not growth-based. Retention continues to be a key challenge across most industries.
5. Staffing Changes and Vacancy Fill Rates
- 12% of employers increased staff, down 3 points from August.
- 11% decreased staff, down 1 point.
- 44% of employers were unable to fill vacancies within a month, up 2 points month-on-month but unchanged from a year earlier.
Interpretation: Despite easing difficulty overall, time-to-fill remains stubbornly high. Recruiters still play a critical role in connecting employers with qualified candidates efficiently.
Implications for the Recruitment Industry
Recruitment Agencies
- The continued rise in recruitment activity offers new business opportunities, especially in regional markets, which are showing strong hiring momentum.
- However, the data suggests most recruitment is due to staff turnover, not expansion — indicating the need to focus on retention messaging and talent pipeline strategies when advising clients.
- Agencies should market themselves as specialists in candidate quality and speed to hire, given that nearly half of employers still can’t fill roles within a month.
Labour Hire and Temp Staffing
- With 45% of employers struggling to recruit, labour hire services remain in strong demand, particularly for short-term or regional placements.
- The slowing in capital city outlook could open opportunities for labour-hire expansion in regional sectors like logistics, agriculture, and manufacturing, where staffing rates rose significantly.
Employer Branding & Retention Strategy
- Since turnover drives the majority of recruitment, agencies should support clients in developing employer value propositions (EVPs) and employee engagement initiatives to reduce churn.
- This could become a selling point in an increasingly candidate-sensitive market.
Strategic Messaging for the Industry
- Tone: Cautious optimism.
- Focus areas for client communication:
- Candidate attraction and retention.
- Regional labour-market opportunities.
- Reducing time-to-hire through efficient sourcing.
- The value of proactive recruitment marketing over reactive hiring.
Summary Snapshot
| Indicator | Sep 2025 | Monthly Change | Annual Change | Notes |
|---|---|---|---|---|
| Recruitment Rate | 51% | ▲ 1 pt | ▲ 6 pts | Stronger hiring activity nationally |
| Recruitment Difficulty | 45% | ▲ 5 pts | ▼ 7 pts | Eased year-on-year, but short-term rise |
| Expecting to Increase Staff | 24% | ▼ 1 pt | ▲ 2 pts | Slight dip in optimism |
| Unable to Fill Roles <1 Month | 44% | ▲ 2 pts | — | Persistent challenge |
| Staff Turnover as Recruitment Driver | 58% | — | — | Primary reason for hiring |
Australia’s recruitment market continues to stabilise, with hiring confidence rising steadily over the past year. While candidate shortages persist in some sectors, the easing of recruitment difficulty and consistent demand for replacement hires suggest a maturing, more balanced labour market. For recruiters and labour-hire providers, the key to success will lie in agility, speed, and retention-focused solutions as employers adjust to a new phase of steady but not explosive hiring activity.
https://www.jobsandskills.gov.au/data/recruitment-experiences-and-outlook-survey#downloads
