Key Findings

• The report reveals a significant shift in the job market dynamics, with permanent job creation experiencing a downward trend, dropping from -2.7% at the beginning of 2023 to -6% by December. Conversely, temporary roles saw a steady increase, rising from 1.1% to 1.2% over the same period.

• For agencies in Australia, the average number of jobs created per account declined steadily from 61.61 in the June quarter of 2023 to 55.44 by December.

• Similarly, in-house talent acquisition observed a reduction in jobs created per account from 43.44 to 37.19.

• Throughout 2023, both agency and in-house recruiters witnessed a rapid increase in the number of job applications received via all platforms. For Australian recruitment agencies, applications surged from 17.7 per job in Q4 2022 to 31.7 a year later. In-house talent acquisition experienced a rise from 24.9 applications per job in Q1 2023 to 32 in Q4 2023.

Detailed Analysis

The report by JobAdder, a leading recruitment software provider, offers a comprehensive overview of the job market trends in Australia in 2023. The report is based on data from over 3,000 recruitment agencies and 1,500 in-house recruiters and hiring managers across various industries. The report covers the following aspects of the job market: permanent and temporary hiring, job creation, applications, and sourcing methods along with many other aspects of the recruitment space.

Permanent and Temporary Hiring

Highlighting a significant swing in the job market dynamics, the report shows that permanent job creation experienced a downward trend, dropping from -2.7% at the beginning of 2023 to -6% by December. This means that there were fewer permanent jobs created in 2023 than in 2022, and the demand for permanent workers declined as the year progressed. This trend was consistent across all states and territories, except for Tasmania, which saw a slight increase in permanent job creation of 0.3%.

Conversely, temporary roles saw a small increase, rising from 1.1% to 1.2% over the same period. This means that there were more temporary jobs created in 2023 than in 2022, and the demand for temporary workers increased as the year progressed. This trend was also consistent across all states and territories, except for the Northern Territory, which saw a slight decrease in temporary job creation of 0.1%. The report suggests that the rise in temporary hiring may be attributed to several factors, such as the need for flexibility and agility in a changing market, and the shortage of skills and talent in certain sectors.

Job Creation

For agencies in Australia, the average number of jobs created per account declined steadily. In Australia, it decreased from 61.61 in the June quarter of 2023 to 55.44 by December. This means that agencies were managing fewer jobs on average in 2023 than in 2022, and the number of jobs per account decreased as the year progressed. This trend may indicate a lower level of hiring activity and a higher level of competition among agencies.

Similarly, in-house talent acquisition observed a reduction in jobs created per account, decreasing from 43.44 to 37.19. This means that in-house recruiters were managing fewer jobs on average in 2023 than in 2022, and the number of jobs per account decreased as the year progressed.

Job Applications

Throughout 2023, both agency and in-house recruiters witnessed a rapid increase in the number of job applications received via all platforms. For Australian recruitment agencies, applications surged from 17.7 per job in Q4 2022 to 31.7 a year later. In-house talent acquisition experienced a rise from 24.9 applications per job in Q1 2023 to 32 in Q4 2023. Meaning that recruiters received more applications per job in 2023 than in 2022, and the number of applications per job increased as the year progressed. This trend was consistent across the market and indicates a higher level of job seeker activity and a lower level of job availability in the market through the course of 2023.

Market Reflection

With the common downward trend throughout 2023 and starting off much the same at the beginning of 2024, Recruitment agencies and in-house teams alike are looking to shake up their strategies for employment, placing more emphasis on permanent and contract work in the changing workplace dynamic rather than looking at permanent recruitment options. If the market continues to shift in this way we should start to see a steady rise in the number of jobs being advertised as 2024 carries on.

Martin Herbst, CEO of JobAdder, emphasizes that the shift towards temporary and flexible work reflects evolving economic conditions and the changing nature of employment. He notes that while the decline in permanent hiring may seem concerning, it signifies a transformation rather than a decline in overall job opportunities. He explains that the rise in temporary hiring may offer benefits for both employers and employees, such as the ability to adapt to changing needs, the opportunity to access diverse skills and talent, and the potential to increase work-life balance and satisfaction.

Proactive Sourcing Insights

Proactive sourcing refers to the method of finding and engaging with potential candidates who may not be actively looking for a job, while traditional job advertising refers to the method of posting a job on a job board or a social media platform and waiting for candidates to apply. There has been a noticeable decrease in applications generated through proactive sourcing, with in-house TA teams generating around 8% of applications through this method, down from approximately 10% the previous year and 23% during the post-COVID hiring surge. The report suggests that this may be due to several factors, such as the increased volume of applications from job boards, the decreased availability of passive candidates in a competitive market, and the limited time and resources of in-house recruiters to conduct proactive sourcing. The report recommends that in-house recruiters should leverage technology and data to identify and engage with high-quality passive candidates and tailor their sourcing strategies to suit different roles and industries.

In conclusion, the market analysis report reveals some significant trends and insights into the current state of hiring in Australia. Showing that the current demand for jobs is very high while the supply from both recruitment agencies and in-house teams is low, creating a competitive employer-driven market. The nature of work is also beginning to change, with more temporary and flexible roles emerging and more proactive sourcing methods required to attract passive candidates. As 2024 continues we should look to see more temporary jobs created in the market for candidates who may be struggling to find employment at the current moment.