Our latest webinar, hosted by Lotus People’s Founder Sinead Connolly, Director Michelle Barrett, and Operations and Marketing Manager Sarah Lunders, delved into insights on the current state of the Australian job market and offered strategic guidance to help businesses and job seekers navigate 2025 with confidence.

Key Takeaways:

1. Economic and Job Market Overview for 2024

The Australian job market has shown cautious optimism as inflation rates stabilise and unemployment remains moderate. This balance has led to cautious hiring, with a slight increase in job ads month-on-month as companies regain confidence in hiring. However, both employers and job seekers should be aware of certain complexities within the current hiring landscape: 

• Job ad volume has decreased year-on-year but has risen month-on-month, signalling a cautious approach but potential for growth if current economic conditions continue. 
• Applications per vacancy are up, reflecting an increase in candidate activity and mobility within the market. 

2. Major Employment Trends of 2024

Several significant trends defined the employment landscape this year, and these are expected to shape hiring priorities in 2025. Key among them: 



• Compensation as a Top Priority: With 57% of employees now prioritising salary as their main motivator, competitive compensation remains essential for both talent acquisition and retention. Cost-of-living pressures continue to drive this focus on financial security. 
• Hybrid Work and Flexibility: Flexible and hybrid working arrangements have become the norm, with 42.5% of roles now offering this option. Flexibility remains a highly desirable feature for candidates, and businesses are encouraged to incorporate it into their value propositions. 
• Career Growth: Many employees now expect career development, mentoring, and upskilling opportunities as standard, aligning with their desire for meaningful work and long-term growth. 
• Diversity and Inclusion (DE&I): Inclusive work environments are more attractive to candidates and result in higher engagement, productivity, and satisfaction, making DE&I a central focus for companies striving to build purpose-driven cultures. 

3. The Rise of Technology and AI in the Workplace

Rapid advancements in AI are reshaping the way many companies operate, particularly for “knowledge workers.” Surveys show that up to 69% of professionals now use generative AI at work, underscoring the need for a tech-savvy, adaptable workforce. 

Employers are advised to prioritise candidates who embrace AI tools to boost productivity and innovation, positioning their teams to stay competitive in 2025. 

4. Emphasis on Work-Life Balance and Well-being

Well-being initiatives and work-life balance have become core expectations. Beyond work-from-home arrangements, many employees value flexibility in hours and location. In fact, 39% of workers now consider flexibility in hours to be essential. 

Companies that authentically prioritise employee well-being are more likely to attract and retain talent effectively. 

Preparing for 2025: Strategic Focus Areas

As businesses and hiring managers prepare for 2025, focusing on these areas will help strengthen their hiring strategies and improve employee satisfaction: 

• Salary Benchmarking and Remuneration Reviews: Regular salary reviews are essential to stay competitive. Fair, market-aligned compensation remains key for attracting and retaining talent in 2025. 
• Employer Branding and Employee Value Proposition: Candidates engage with prospective employers on LinkedIn an average of 7.3 months before applying, often interacting with content up to 47 times. Maintaining a positive and consistent online presence helps companies attract candidates who align with their values and culture. 
• Tech and Innovation: As AI tools become more widespread, staying up-to-date with recruitment technology will be crucial. By modernising tech stacks, companies can streamline hiring and enhance candidate experience. 
• Commitment to DE&I: A solid DE&I strategy fosters employee engagement and brings diverse perspectives that enhance decision-making. Companies should review hiring practices regularly to ensure they support diversity, equity, and inclusion. 
• Proactive and Agile Hiring: January and September are peak months for job changes. Getting an early start on hiring can help companies avoid the intense competition that typically characterises these periods. 

Q&A Highlights

• Our Q&A addressed several important topics raised by attendees: 
• Candidate Motivations: Salary, work-life balance, career growth, and flexibility remain top priorities. 
• Emerging Trends: AI-driven recruitment tools and sustainable practices will be central in 2025 hiring. 
• Skills vs. Experience: Emphasising transferable skills and adaptability in hiring allows businesses to onboard talent who can grow with the organisation. 

You can watch the full video below, and for any additional questions or information, please reach out to the Lotus People team or check out our market resources links.