If you are job hunting in Australia or New Zealand presently, your qualifications may no longer be the strongest part of your application. Increasingly, employers across the countries are asking a different question: What can this person actually do?
Earlier this year, the Hays 2025 Skills Report confirmed a major shift underway in the job market. As the region faces growing skills shortages, 86% of hiring managers are moving away from traditional, qualification-based hiring models and focusing instead on skills-based hiring. For job seekers, that means the most valuable assets are no longer just degrees or years of experience — but skills like communication, teamwork, adaptability, and problem-solving.
These human capabilities are now considered essential across almost every industry. Meanwhile, sector-specific technical skills are still in demand — but increasingly, employers are willing to teach them if a candidate brings the right mindset and soft skills to the role.
A nationwide shortage — a shift in strategy
The labour market in both Australia and New Zealand is under pressure. According to the Hays report, based on responses from over 5,000 hiring managers and professionals across these countries, around 85% of employers say skills gaps are having a direct impact on team and organisational performance.
Some sectors are more affected than others. In Public Safety and Administration, 60% of employers report significant gaps. In Manufacturing, that figure stands at 52%, and in Financial and Insurance Services, it’s 51%. Larger organisations are feeling the strain most acutely, with over half of those employing over 1,000 people facing moderate to extreme skills gaps.
This has pushed many businesses to rethink how they hire. While skilled migration has long been considered a solution, it’s now viewed as slow and costly, with only 37% of employers using it to fill talent shortages. Instead, a growing number are reworking job descriptions, re-training hiring managers, and evaluating applicants based on practical ability rather than formal credentials.
The most in-demand skills right now
So what exactly are employers looking for? The report reveals that the most common skill gaps include technical or hard skills, cited by 57% of hiring managers, followed closely by critical thinking and problem-solving (50%), leadership and management abilities (46%), and communication skills (41%).
But when employers were asked to identify the skills they believe will be most important in the future of work, the emphasis shifted even more toward soft skills. Communication and teamwork topped the list, highlighted by 84% of hiring managers. Critical thinking and adaptability followed closely, cited by 81% and 71% respectively.
Interestingly, despite the rise of generative AI tools and digital transformation, only 30% of respondents believed AI-specific skills would be essential in future.
How to tailor your job search by industry
The report shows that each industry is grappling with unique challenges — and job seekers should tailor their resumes accordingly.
In Public Safety and Administration, communication under pressure, decision-making, and leadership are top priorities. Employers are looking for candidates who can navigate high-stress situations, work collaboratively in teams, and understand policy environments.
In the Manufacturing sector, while technical operation remains key, employers are increasingly seeking workers who can adapt to automation technologies, follow evolving safety protocols, and contribute to continuous process improvement. A willingness to learn new tools and workflows is especially valuable.
In Financial and Insurance Services, data literacy and risk analysis are in high demand. But just as crucial is the ability to explain complex financial information in a clear, client-friendly manner, blending analytical thinking with communication.
For those in IT and Tech, employers aren’t just chasing coders. They need professionals who can manage agile projects, collaborate with non-technical teams, and align tech solutions with business needs. Strong stakeholder communication skills and the ability to lead cross-functional teams are becoming just as important as technical know-how.
Meanwhile, in Construction and the Trades, traditional competencies like project coordination, on-site problem-solving, and compliance with health and safety regulations remain critical. However, digital planning tools and a proactive, solutions-oriented mindset are increasingly valued on the job site.
But skills don't stay the same
Another major takeaway from the report is the growing recognition, by both employers and employees, that skills are dynamic.
A striking 87% of professionals believe the requirements for their roles will change in the next five years. In response, many organisations are investing in upskilling their teams through structured training and on-the-job development. In fact, 67% of employers report that these initiatives are meeting their goals.
But professionals can’t afford to wait for their employer to provide training. Shane Little, Hays APAC managing director, said: “To thrive in a rapidly evolving job market, embracing continuous learning and adaptability is non-negotiable.”
Micro-credentials, industry certifications, online courses, and informal learning are all increasingly important tools for workers to stay competitive.
The report also highlights a worrying disconnect between what employers are prioritising and what workers are focusing on.
While businesses place high value on communication, problem-solving, and adaptability, professionals are more likely to invest in technical skills, IT training, or leadership development. For instance, 58% of workers surveyed ranked new tech skills as their top priority, yet only 30% of employers viewed AI or tech-specific capabilities as critical.
This mismatch could mean that workers miss out on opportunities, not because they lack ability, but because they’re not aligning their learning with what the job market truly needs.
What you should do now
So, how can you stand out in a changing labour market? Start by sharpening your transferable skills — the ones employers are asking for: communication, critical thinking, adaptability, and teamwork. Then, complement those with industry-relevant technical abilities, whether that’s project coordination in construction, data analysis in finance, or machine operation in manufacturing.
Invest in ongoing learning, not just formal education. Take micro-credentials, attend workshops, seek out mentorships, or volunteer for cross-functional projects.
Most importantly, make your skills visible. Use your CV, portfolio, and interviews to demonstrate not just where you’ve worked, but what you’ve learned, and how you apply it.
Skills are the new currency, and in today's job market what you can do matters more than what you’ve done before. Employers are embracing skills-based hiring to stay competitive. For job seekers, this is a chance to rethink what they bring to the table and how they present it.
Those who focus on developing the right mix of technical and human skills, and keep learning, will not only land the jobs but will be ready for the roles of tomorrow.