Despite being skilled and qualified, six in ten Australians are missing out on relevant job opportunities — not due to a lack of capability, but because they are feeling lost in a sea of outdated job search tools and confusing job titles, according to recent data from LinkedIn, which paints a concerning picture of a job market that’s failing to connect people with the roles they are suited for.

The data reveals that 60% of jobseekers are struggling to navigate the modern job market. Over half (51%) report uncertainty about which job titles to search for, while 40% admit they’ve missed out on opportunities because they used ineffective keywords or misunderstood how to apply filters. The implications are stark: many quality candidates are being overlooked, and businesses are losing access to the talent they urgently need.

Mismatch between skills, roles and passion

The problem goes beyond flawed tools — it reflects a deeper disconnect between people’s jobs and their aspirations. Only 9% of Australians reported having secured their childhood dream job, and a mere 13% are in roles that leverage the core set of skills they possess. Even more alarming, just 15% feel passionate about their current work. This palpable disengagement is fueling a shift, prompting nearly three in ten (29%) to actively explore new career opportunities in 2025. For many, the solution lies not in starting over but in seeking roles that resonate with their innate strengths and interests.

Matt Tindale, LinkedIn’s managing director for Australia and New Zealand, said that there's a lack of flexibility in the way current tools parse jobseekers' input, which is "often limited by rigid filters and predefined boxes." Jobseekers are unable to surface positions that match their profiles and career aspirations.

At the same time, recruiters face challenges in identifying higher-calibre candidates. LinkedIn reported that 59% of HR professionals in Australia currently spend one to three hours per day wrestling with applications — time that could be better spent elsewhere. Unsurprisingly, 52% are looking at AI tools to improve hiring speed and efficiency.

The prevailing sentiment among talent leaders is that recruiters need to evolve into career coaches and talent advisors — individuals who handle complex decision-making and guide candidates through life-changing transitions. As John Vlastelica, CEO of Recruiting Toolbox, articulates: “They will be much more of a career coach … providing more of an executive recruiter kind of experience.” The recruiter role is thus redefined: not merely a processor of resumes, but a mentor who helps candidates plan their future.

Rapid AI adoption and skills-based hiring

Australia and New Zealand are leading the charge in generative AI adoption, with 50% of organisations in the region either actively integrating or experimenting with these tools (in comparison to global adoption rates of 37%). Responsible deployment in recruitment requires structured “playgrounds” where recruiters can test new functionality, such as writing job ads or reaching out to passive candidates,  without risk. Training needs to embrace a hybrid model, combining technical command of AI interfaces with soft-skill mastery in communication and reasoning. Bias mitigation, transparency, accountability, and value alignment must shape AI integration, as emphasised by guiding principles from LinkedIn and Textio.

Meanwhile, companies are increasingly embracing skills-based hiring, which prioritises a candidate’s capabilities over traditional credentials like degrees or past titles. This pivot aligns with shifting market dynamics — 96% of talent-acquisition professionals in the ANZ region believe that accurately assessing candidates’ skills is critical to achieving hiring success. LinkedIn data shows that organisations focused on skills-based candidate searches are 12% more likely to make quality hires globally.

Generative AI is the catalyst making this shift possible. By automating the analysis of resumes and extracting skill signals, AI tools can conduct streamlined assessments, minimise bias, and highlight competency-based talent. As recruiters save time on repetitive administrative tasks, about 35% of their freed-up time goes toward candidate screening and 26% toward skills assessment. Globally, 26% of paid LinkedIn job posts in 2023 didn’t require a degree — up from 22% in 2020, reflecting a 16% year-on-year rise.

Job-seeker and recruiter transformations aside, LinkedIn’s 2025 Jobs on the Rise list casts light on what kinds of roles are expanding in this shifting landscape. Topping the list is English teacher, followed by other human-centric roles — travel specialist, sommelier, employee relations specialist. Notably, technical roles remain in demand, with electrical design engineer and audio visual engineer reflecting the necessity of hands-on expertise in fast-evolving sectors. These trends reaffirm the dual imperative: while AI automates many workflows, human qualities remain the engine driving emerging career opportunities.