More candidates, less hiring: Competition for limited roles increases job market tensions

There aren’t many knives that could cut the tension of the current Australian job market as recruiter and candidate competition continues to heat up.

A recent report by JobAdder has highlighted the tension arising in the current Australian job market. Candidate numbers across both Australia and New Zealand are rising, yet roles are limited as 53 per cent of Australian recruiters are observing increased rivalry among jobseekers.

Not only is the competition heating up between jobseekers, but nearly two-thirds of recruiters noted that competition had intensified to secure clients. Pair this with escalating client expectations, and new and improved strategies are needed to succeed in the space.

One asset that is increasing among recruiters is AI. According to the research, 67 per cent of Australian recruitment businesses already use elements of AI or automation, with nearly two-thirds of Australian businesses using AI tools to streamline administrative tasks.

“The Benchmarks Report paints a picture of a job market that is both challenging and full of potential,” said Martin Herbst, chief executive of JobAdder.

“On one hand, businesses are contending with economic uncertainty, increasing competition and overwhelming numbers of candidates. On the other hand, there are clear opportunities for those willing to adapt and innovate.”

“Embracing technology is proving to be a game changer for recruitment teams looking to streamline processes and improve outcomes for clients and candidates alike.”

Despite this increased integration of AI, Herbst argues that technology isn’t the only pathway forward. Amid economic challenges, investments in building skills and expertise among the workforce are crucial – especially if you hope to achieve a return on investment in AI implementation.

“Technology alone is not the solution. Businesses must invest in building the skills and expertise needed to maximise the value of these tools. Addressing internal gaps, improving workforce wellbeing, and fostering a culture of resilience will be critical to success in 2025 and beyond,” said Herbst.

As the competition between businesses in recruitment intensifies, delivering on building skills among the workforce is crucial.

“Recruitment at its core is about people. By balancing strategic investments in innovation with a focus on business development, organisations can position themselves as leaders in an increasingly competitive and complex market,” said Herbst.

“With smart tech adoption, sharper business strategies, and a focus on people, agencies can turn pressures into progress and lead in an intensely competitive market.”