Leading recruitment software provider, JobAdder, has released its first Recruitment Benchmarking Report, shedding light on the recruitment landscape across Australia and New Zealand (ANZ) as the industry prepares for 2025.
The report highlights polarities in the ANZ job market: While candidate numbers are rising – 53 per cent of Australian and 78 per cent of New Zealand recruiters report increased applicant volume – hiring rates across organisations are falling, with 47 per cent of Australians and 80 per cent of New Zealanders noting declines. This imbalance has led to excess candidates and longer hiring times, as 47 per cent of Australian and 40 per cent of New Zealand recruiters cite delays due to cautious decision-making amid economic uncertainty.
Competition for jobs is intensifying, with 53 per cent of Australian and 70 per cent of New Zealand recruiters observing increased rivalry among job seekers. Mass redundancies have added to the strain, their impact increasingly felt by 41 per cent in Australia and 93 per cent in New Zealand.
Despite these challenges, 45 per cent of recruiters in ANZ remain optimistic about industry growth. However, escalating client expectations – up 75 per cent in Australia and 65 per cent in New Zealand – are pushing recruiters to innovate and adapt in a market shaped by economic pressures and evolving technology.
AI Adoption Accelerates, Yet Barriers Remain
AI is reshaping recruitment across ANZ, with 73 per cent of Australian and 85 per cent of New Zealand agencies planning to expand its use in 2024. Currently, 67 per cent of Australian and 65 per cent of New Zealand recruitment businesses already use elements of AI or automation.
Nearly two-thirds of Australian businesses and 4 in 5 New Zealand businesses use AI tools to streamline administrative tasks, while job ad optimisation tools are adopted by 44 per cent and 58 per cent, respectively. As agencies explore AI’s potential, these technologies are likely to see wider adoption.
Despite advancements in AI adoption, confidence in fully leveraging its potential remains low across ANZ. Only 14 per cent of Australians and 25 per cent of New Zealanders express high confidence, highlighting a skills gap that limits agencies in both countries from maximising AI’s impact on hiring efficiency and effectiveness.
Across ANZ, AI is making a noticeable impact: 64 per cent of Australian recruitment firms report time savings, with 57 per cent seeing measurable ROI, while in New Zealand, 70 per cent report time savings, and 68 per cent see tangible returns. However, bridging internal skill gaps is crucial to make AI a core part of recruitment rather than a missed opportunity.
“The Benchmarks Report paints a picture of a job market that is both challenging and full of potential,” said Martin Herbst, CEO of JobAdder. “On one hand, businesses are contending with economic uncertainty, increasing competition and overwhelming numbers of candidates. On the other hand, there are clear opportunities for those willing to adapt and innovate. Embracing technology is proving to be a game-changer for recruitment teams looking to streamline processes and improve outcomes for clients and candidates alike”.
Herbst continued: “Technology alone is not the solution. Businesses must invest in building the skills and expertise needed to maximise the value of these tools. Addressing internal gaps, improving workforce wellbeing, and fostering a culture of resilience will be critical to success in 2025 and beyond.”
