The paradox facing Aussie recruiters and jobseekers

An increasingly competitive job market is making hiring more complicated, new research from LinkedIn has highlighted.

Recruiters are having a harder time finding qualified talent, despite there being more candidates than ever. According to new data from LinkedIn, jobseekers outnumber job openings more than at any time since the pandemic, and applicants per role have almost doubled since 2022.

Seventy-seven per cent of recruiters reported difficulty in finding qualified talent.

Whether talent is getting hidden in the sheer degree of application volume or skills shortages are more apparent, both sides of the hiring process are struggling. LinkedIn reports a 21 per cent decline in Australian hiring rates compared to pre-pandemic numbers.

Layoffs and restrained hiring have led to less job overturn and an increasingly competitive job market, but this hasn’t eased the workload for hiring professionals.

Two in five (41 per cent) Aussie recruiters feel mounting pressure to meet hiring demands, and 31 per cent feel unprepared and overwhelmed by application numbers.

Many are turning to AI to help the load.

What was once a novel experiment is now, for 44 per cent of recruiters, an everyday tool. Reportedly, AI is improving the speed and quality of application review – over 60 per cent of surveyed recruiters purport that it has uncovered “hidden gems” that, they say, might have been missed otherwise.

In addition, 74 per cent have said AI has changed organisational hiring processes.

The “job-hugging” phenomenon, for example, has become increasingly popular due to economic insecurity, job anxiety, and a surging demand for AI. Does this explain the shift, or is it a result of a changing job market?

Either way, AI use is clearly becoming more ingrained across the board. AI-assisted interviews are increasingly utilised for consistency and speed in early screening – 76 per cent say it saves time that can be used to hold meaningful conversations with progressing candidates.

Seventy-two per cent also claim it removes bias and helps standardise the process.

This sentiment is echoed by LinkedIn’s ANZ senior director for talent and learning solutions, Adam Gregory, who said: “AI is actually making hiring more human, allowing recruiters to get away from their desks and focus on the high-value conversations that secure top talent.”

Recruiters certainly seem positive for the future – nearly two-thirds report filling roles faster with AI assistance, and 70 per cent appreciate the streamlined process.

However, this time last year, 68 per cent of recruiters felt difficulty in filling positions, and this number has now grown by almost 10 per cent. As AI becomes increasingly relied on in hiring, it remains to be seen where this number goes next.