• Job seekers are applying to an average of seven jobs per week, but receiving fewer responses due to a competitive market.
• 68% of HR professionals report that finding qualified talent has become harder in the past year, with 94% of applications not meeting job requirements, leading to significant time spent on candidate screening.
• The skills needed in the workforce are projected to change by 66% by 2030, contributing to a growing skills gap that both job seekers and employers must address.

New data from LinkedIn reveals a shifting job market in Australia, with nearly 3 out of 5 Australians (59%) actively seeking new employment opportunities in 2025. However, the process is becoming increasingly difficult for both job seekers and employers. Over two-thirds (68%) of HR professionals report that hiring qualified talent has become harder in the last year, highlighting the growing challenges within the Australian job market.

Job seekers in Australia are feeling the strain, with 41% of them applying to more jobs than ever before but receiving fewer responses. On average, Australians apply for seven roles a week, indicating an ongoing competitive environment for open positions. Additionally, 65% of job seekers are exploring opportunities outside their current industry or role, a significant increase from 52% last year. This shift reflects the evolving nature of the workforce, where individuals are increasingly seeking to pivot into new fields, driven by changing job market dynamics.

The hiring process for HR professionals is proving just as challenging. Almost a fifth (17%) of HR professionals report spending between 3 to 5 hours daily sifting through applications. Despite this time investment, 94% of HR professionals indicate that the majority of applications they receive fail to meet the criteria listed for the role. This mismatch between applicant qualifications and job requirements underscores the widening skills gap between job seekers and the demands of employers.

One of the primary motivators driving Australians to seek new job opportunities is the desire for higher wages, with 49% of job seekers listing salary as a key factor. Better work-life balance is another significant consideration, with 36% of job seekers identifying it as a key reason for their decision to change jobs.

This disconnect between job seekers' skills and the roles that businesses require is a major contributing factor to the hiring difficulties. The rapidly changing technological landscape is reshaping the skills needed for jobs in Australia, with LinkedIn data showing that the skills required for jobs are projected to change by 66% by 2030 compared to 2016. 

As technology continues to drive workplace innovation and growth, businesses are struggling to find candidates who possess the right blend of soft skills, leadership capabilities, and technical expertise. Australian HR professionals list finding candidates with the right soft skills (37%), leadership and management skills (35%), and technical/IT skills (31%) as some of their biggest challenges.

In response to these challenges, LinkedIn has introduced new tools designed to help bridge the skills gap. LinkedIn's job match feature, for example, helps job seekers better align their skills and experience with open positions. This tool aims to guide job seekers toward roles where they are a better fit, improving the quality of candidates for recruiters. Senior Director of LinkedIn Talent and Learning Solutions, Adam Gregory, commented, “Hirers are increasingly challenged by people applying for jobs that don’t match their skills. Our new job match feature helps job seekers be more strategic, leading to a stronger quality of candidate for recruiters.”

AI technology is also being leveraged to streamline the hiring process. Barry Harvey, Talent Acquisition Lead at Airservices Australia, noted that AI tools, such as AI-assisted search and inMail, help recruiters quickly identify relevant candidates, saving time and allowing them to focus on the most impactful aspects of their work.

To help job seekers explore new opportunities, LinkedIn has released its annual “Jobs on the Rise” list, which highlights the fastest-growing job roles in Australia. The top five roles on the rise include English Teacher, Server, Travel Specialist, Sommelier, and Electrical Design Engineer. This list offers valuable insights into emerging trends and the changing landscape of employment, providing job seekers with a roadmap to the future of work.

As the job market becomes more competitive and complex, both job seekers and employers must adapt to the evolving landscape, leveraging new tools and strategies to navigate the challenges of 2025.