EMPLOYMENT TRENDS TO WATCH IN 2025
As we quickly approach 2025, we've noticed several emerging trends that will shape the landscape for both employers and job seekers. Here are some insights to help navigate the upcoming year:
Renewable Energy Sector Growth
Australia's commitment to reducing carbon emissions and promoting renewable energy is further set to create more jobs in 2025. With government investments in solar, wind, and other clean energy projects, roles in renewable energy construction are increasing in demand. We have noticed this surge first hand through our involvement in matching Solar Energy organisations with industry professionals. We are proud to help in working towards greener goals of the 2030 Agenda for Sustainable Development.
Unemployment Rate Dynamics
Currently sitting at 4.1%, Australia’s unemployment rate is expected to rise slightly to around 4.4-4.5% by mid-2025. While this figure remains historically low, employers should be prepared for a competitive hiring environment. With job advertisements increasing, but fewer job vacancies in certain sectors, companies may face challenges in attracting and retaining skilled workers. As a result of this, we're expecting more companies to engage with recruitment agencies to combat the issues this will present in 2025.
Challenges of Small Talent Pools
As the job market tightens, smaller talent pools will become a significant hiring challenge for employers. With record participation rates at 67.2%, the competition for top candidates will be fierce. Businesses must act quickly and strategically to secure the talent they need, particularly in high-demand areas like renewable energy and technology.
Further Rise in Hybrid Work Models
In 2025, we believe the hybrid work model will continue to become more prevalent. We’ve observed a growing preference amongst job candidates for flexible working arrangements, and opting for companies that offer a blended work from home/in-office split where applicable. We have also seen employers becoming more open to flexible working arrangements, including offering the option for workers to have a 9-day working fortnight. We suspect employers looking to attract employees will need to embrace this shift and create work environments that support flexibility and collaboration in the New Year.
January and February: Peak Hiring Months
The start of the year will be bustling with hiring activity. January and February are historically the busiest times for recruitment, making it essential for companies to plan ahead. To avoid missing out on top candidates, we recommend reaching out to recruitment agencies early to discuss your hiring needs and strategies.
As the employment landscape continues to evolve, staying informed about these trends will be crucial for both employers and job seekers. At Smith & Co, we’re here to support you in navigating these changes and connecting with the right talent for your needs. Reach out to us to discuss how we can help you thrive in 2025!
