What Does Australia’s Workforce Really Want in 2025?

Australia’s job market is undergoing a major reset in 2025, with new national data revealing workers are increasingly prioritising flexibility, wellbeing, and meaningful work—while employers grapple with slow hiring processes, hybrid work challenges, and a growing generational divide.

Released today, the people2people 2025 Workplace & Employment Trends Report draws on insights from over 3,500 employees, job seekers, and employers across the country. It outlines the biggest shifts in attitudes towards work and hiring, and how they’re playing out across the states.

“Across Australia, employers are feeling the pressure from every angle—competition for talent, irrelevant applications, and candidate unreliability are topping the list of hiring challenges,” says Suhini Wijayasinghe, Head of HR Solutions at people2people Recruitment. “Job ad volumes have dropped 17.3% over the past year, but the complexity of hiring hasn’t eased. In fact, the pressure is mounting for employers to refine their processes and offer a compelling reason for candidates to choose them.”

Key National Trends:

• Hiring takes too long: With hiring decisions for permanent roles now taking an average of 6 weeks, a major gap has formed – 52% of job seekers expect to be hired within 2 weeks. The report shows slow processes cost businesses not just time, but also productivity, top-tier candidates, and revenue.

• Return-to-Office is still divisive: While many employers are increasing their in-office expectations, 58% of employees say this negatively affects their wellbeing, and 26% say they’d consider quitting if asked to come in more often.

• Flexibility is currency: 37% of job seekers say they’d expect a 5–10% pay rise to return to the office full-time, and a further 32% say even a small bump (0–5%) would be expected. Flexibility has moved from being a ‘nice-to-have’ to a core part of compensation.

• Generational differences are sharper than ever:

  • Baby Boomers want job security and stability.

  • Gen X prioritises autonomy and work-life balance.

  • Millennials crave recognition and development.

  • Gen Z demand flexibility, inclusivity, and fast-tracked opportunities.

• Remote work isn’t perfect: Managers cite team cohesion (62%), lack of spontaneous collaboration (65%), and engagement (60%) as key challenges in hybrid environments.

• The flexibility timeline has shifted: A majority of job seekers (54%) expect flexibility from day one in a new role—not after probation or onboarding.

State-by-State Workplace Trends:

• New South Wales: “In NSW, 25% of job ads are attracting the wrong candidates, and talent competition is heating up,” says NSW Managing Director Catherine Kennedy. “This aligns with a 17.1% year-on-year drop in online job ads and the strictest return-to-office mandates in the country. The public sector in particular is seeing rising wellbeing concerns among employees as office mandates increase. Employers need to refine engagement strategies to stay competitive in a tightening labour market.”

• Victoria: “Victoria continues to feel the effects of a tightening market, with job ads dropping 22.6% over the past year—the steepest decline of any state,” says Branch Manager Mary Savova. “Yet, employers here are leading the way in hybrid work alignment, with better matches between workplace expectations and employee preferences. It’s no surprise that Victorian respondents report stronger job satisfaction and workplace culture in hybrid settings.”

• Queensland: “Queensland employers are facing a sharp 4.8% monthly drop in job ads and are grappling with irrelevant applications and unreliable candidates,” says Queensland Managing Director Ben Wheeler. “But there’s also more openness to flexible work here. It’s a state where tailoring benefits to wellbeing and work-life balance will go a long way in boosting retention.”

• South Australia: “South Australia stands out with a rare increase in job ads this month—up 0.8%—but hiring challenges persist with high volumes of irrelevant applications,” says SA Managing Director Peta Seaman. “With 73% of job seekers actively looking and a more traditional in-office culture, the state is also seeing greater workforce loyalty and stability.”

• Western Australia: “WA saw a 14.7% drop in job ads over the year, and talent competition remains the top challenge,” says Branch Manager Colleen Deere. “It’s a market still moving, but local talent is limited. WA’s more traditional workplace preferences contribute to greater loyalty and lower mobility—but attracting new talent will require sharper, more targeted recruitment strategies.”

Catherine adds that generational diversity also needs to be a bigger part of the conversation. “Managing a multigenerational workforce means understanding what drives each group. Whether it’s flexibility for Gen Z or job security for Boomers, a one-size-fits-all model just doesn’t work anymore.”

With economic pressure rising and competition for talent still high in certain industries, people2people says the most successful businesses in 2025 will be those that speed up hiring, personalise flexibility, and foster inclusive workplace cultures.

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