Australia’s recruitment market showed signs of cooling in June, although conditions remain stronger than the same period last year, according to the latest data from Jobs and Skills Australia.
The June 2025 Recruitment Experiences and Outlook Survey found that 44 per cent of employers undertook recruitment activity in the past month, down six percentage points from May. Despite the monthly decline, hiring activity was five points higher than in June 2024.
Recruitment difficulty also eased, with 44 per cent of employers reporting challenges in filling roles, a significant drop from the peak of 75 per cent in July 2022. The average number of applicants per vacancy remained stable compared to May, although there was a marginal increase in the number of applicants interviewed.
Turnover continued to be the leading reason for recruitment, cited in 65 per cent of hiring cases. Only 34 per cent of employers were hiring for newly created roles. The report indicated that 39 per cent of vacancies remained unfilled after one month, a figure that has remained consistent in recent quarters.
Expectations for future recruitment activity appeared to stabilise, with 19 per cent of employers anticipating an increase in staffing over the next three months, and 71 per cent expecting no change. Employers in regional areas were slightly more optimistic, with 21 per cent forecasting increased hiring, compared to 18 per cent in capital cities.
A supplementary spotlight report from Jobs and Skills Australia highlighted the operational impacts of recruitment difficulty. Amongst employers who reported challenges in hiring, 44 per cent said it had negatively affected their business performance. These effects included increased workloads for existing staff, decreased productivity, lower output, and delayed delivery of products or services.
The report also found that small and medium-sized enterprises were more likely to experience adverse outcomes from unfilled roles, particularly when hiring for skilled or specialist positions. Retail, hospitality, healthcare, and construction were amongst the sectors most affected by prolonged vacancies.
The data forms part of ongoing national labour market monitoring conducted by Jobs and Skills Australia, designed to provide timely insights into employer experiences and workforce demand.
Sources
Jobs and Skills Australia. (2025). Recruitment eases as employers hold steady on staffing outlook. Retrieved from https://www.jobsandskills.gov.au/news/recruitment-eases-employers-hold-steady-staffing-outlook
Jobs and Skills Australia. (2025). REOS Spotlight: How recruitment challenges affect businesses. Retrieved from https://www.jobsandskills.gov.au/data/recruitment-experiences-and-outlook-survey/spotlight-articles
