Economic Shifts Challenge Australian Job Market in 2025

Feeling stuck in your job? You’re not alone—60% of workers are staying in roles longer than they’d like due to financial concerns and fear of instability. Yet, 66% believe a career change could make them happier. In this blog, people2people’s Aiden Boast unpacks recent data revealing why so many professionals are hesitant to move on, despite growing demand for skills-based hiring and flexible work options. Learn practical tips for overcoming career stagnation, leveraging your transferable skills, and taking the first steps toward a more fulfilling role. Could now be the perfect time to rethink your career path? Read more to find out.

Artificial intelligence (AI) has rapidly moved from being a futuristic concept to a practical tool already reshaping industries—including human resources. In fact, recent surveys show that 68% of HR leaders have already integrated AI into their hiring processes. From automating repetitive tasks to enhancing candidate experiences, AI is unlocking new efficiencies across the entire recruitment lifecycle. As AI becomes more mainstream, HR teams are leveraging tools like chatbots, generative AI platforms, and applicant tracking systems with built-in intelligence to save time and make smarter decisions. Whether it’s auto-sorting CVs, drafting communications, or delivering data-backed insights, AI is now a critical element in HR’s toolkit. However, with these benefits come valid concerns. Questions around bias, ethics, data quality, and the fear of losing the “human touch” still hold some organisations back from adopting AI. For businesses looking to remain competitive in today’s fast-moving job market, understanding how AI works—and how to use it responsibly—is essential. With AI quickly becoming a core part of HR strategy, the challenge for many professionals isn’t whether to adopt it, but how to do so effectively while maintaining fairness and empathy in the hiring process. “Sixty-eight percent of HR leaders have integrated AI into their hiring,” In a recent live stream, Aiden Boast, Temporary Specialist Recruitment Team Leader at people2people, sat down with Nicole Ashe, HR expert and author of The People Perspective, to explore how AI is shaping recruitment and the workplace. Aiden kicked things off by highlighting the growing adoption of AI in hiring. “Sixty-eight percent of HR leaders have integrated AI into their hiring,” he noted. “As AI continues to reshape the hiring process for many, businesses that embrace it are gaining a competitive edge.” Nicole explained that AI is not a singular tool but a suite of technologies working together to improve HR outcomes. “AI is about augmenting—it’s about lifting your expertise in HR or talent acquisition and levelling it up,” she said. “It can predict outcomes, automate repetitive tasks, and provide insights HR professionals need to make better decisions.” She emphasised how everyday tools like Copilot and ChatGPT are already making life easier for HR teams. “Once you train AI in your brand or voice of your organisation, it won’t sound artificial… it actually lifts your game,” she added. One surprising use case Nicole shared involved public transport: “AI is already used by Transport NSW to adjust traffic lights, helping Sydney buses run on time.” Closer to HR, she noted, “Platforms like LinkedIn Learning are using AI to suggest training based on people’s skills and career goals.” Aiden then raised a key concern: resistance from HR leaders. Nicole was quick to respond. “The biggest concern is bias,” she said. “AI is only as good as the data it learns from. If your past hiring practices have bias, that will carry through.” She also acknowledged a common fear: that AI might replace human roles. “It’s not about replacing recruiters—it’s about enabling them to focus more on relationships and less on admin,” she explained. “AI lets recruiters get back to understanding candidates, building connections, and making more informed decisions.” The conversation also touched on misconceptions. Nicole noted, “People think AI makes final hiring decisions, but it’s only one part of the process.” The real opportunity lies in combining human judgment with AI-generated insights to deliver faster, fairer, and more effective hiring. As AI becomes more embedded in day-to-day workflows, HR leaders will need to sharpen their skills. “AI literacy is becoming essential,” Nicole said. “It doesn’t mean you need to be an engineer, but you must understand what AI can and can’t do.” She encouraged organisations to take a phased approach to AI adoption. “Start small—maybe with a chatbot or automating email responses—then build from there,” she suggested. “HR’s role is also to help shape governance and ethical frameworks around how AI is used.” Aiden closed the conversation with appreciation for Nicole’s insights. “It’s fascinating how AI is already integrated in so many ways. Thanks for helping us understand the potential—and the pitfalls.” Key Strategies for HR Leaders Embracing AI As more companies integrate AI into their HR systems, leaders should consider the following strategies to successfully navigate the transition: 1. Prioritise AI literacy. HR teams must understand how AI works, what it can do, and where its limits are. This means upskilling staff to interpret AI-driven insights and manage its outputs responsibly. 2. Start small and scale. Begin with manageable projects like automating scheduling or implementing a recruitment chatbot. As confidence and understanding grow, expand into more complex areas like predictive analytics and performance tracking. 3. Always involve human oversight. AI is a tool—not a replacement. HR professionals should validate AI outputs, especially in candidate selection, to ensure fairness and ethical decision-making. 4. Monitor for bias. Regularly audit AI tools to ensure they’re not perpetuating bias from past hiring decisions. This includes reviewing data sources, outputs, and how algorithms rank candidates. 5. Build clear governance policies. Develop and enforce frameworks around AI use, including transparency, data privacy, and accountability. Define who is responsible for monitoring outcomes and adjusting systems when needed. 6. Use AI to free up time for human connection. Let AI handle time-consuming tasks so HR professionals can focus on strategic initiatives, candidate engagement, and employee experience—the parts of HR that truly require a human touch. 7. Treat AI as a collaborative partner. Think of AI as a personal assistant. When trained correctly, it enhances productivity, creativity, and accuracy, but the final decisions should still rest with people. As AI continues to revolutionise HR practices, those who embrace it thoughtfully and ethically will be better positioned to attract talent, improve candidate experiences, and drive long-term success.

The job market is shifting, with 55% of employers and 67% of employees believing experience holds more value than a degree. As industries evolve and AI reshapes job demands, businesses now prioritise practical skills, adaptability, and hands-on expertise over formal education. 76% of employers are investing in learning and development to train hires on the job, making skills-first hiring the new norm. Job seekers must showcase experience, while employers should expand their talent pipelines. Are degrees becoming less relevant in today’s workforce, or do they still hold an advantage? Read our latest blog to find out.

Legal Landscape of 2025: Trends Shaping Australia's Future As 2025 approaches, the legal market in Australia is poised for significant transformation. With shifts in technology, evolving client expectations, and demographic changes shaping the landscape, professionals in the field must stay ahead of these trends to remain competitive. Recent statistics suggest that Australia's legal sector is experiencing an increased demand for specialisations such as wills and estates, attributed to the ageing population and intergenerational wealth transfers. Moreover, advancements in technology, such as artificial intelligence and online transaction platforms, are reshaping how legal services are delivered, requiring practitioners to adapt quickly. The legal industry has always been a reflection of societal and technological changes, and today is no exception. The rise of digital tools, increasing client awareness, and global economic shifts have placed new demands on legal professionals. As Australia enters a period of rapid economic recovery post-COVID-19, legal practitioners face the dual challenge of integrating technological advancements while navigating an evolving market shaped by demographic shifts and increased regulation. Understanding these trends is essential for those looking to thrive in the legal market of 2025. “People often turn to platforms like ChatGPT for legal information, but this poses risks, as the advice isn’t tailored to individual circumstances." In a recent Australia Market Update, Colleen Deere, people2people Perth Legal Team Leader, and Manuela Kacomanolis, Wills and Estates Solicitor at DFG Legal, shared their insights into the challenges and opportunities shaping Australia's legal landscape. Their discussion covered technological advancements, shifting client behaviours, and the growing importance of estate planning in the modern legal environment. Manuela Kacomanolis highlighted key changes in Australia’s legal market over the past year, noting the increasing reliance on digital processes. “Since August 2023, Australia has moved away from issuing paper titles, transitioning entirely to online systems through platforms like PEXA,” she explained. This shift, which streamlines transactions involving property, such as survivorship applications and transfers, marks a significant departure from traditional methods. “These online processes not only expedite transactions but also ensure a more accurate reflection of property titles,” she added. However, these advancements come with challenges. One of the most pressing issues, according to Manuela, is the growing dependence on AI for legal advice. “People often turn to platforms like ChatGPT for legal information, but this poses risks, as the advice isn’t tailored to individual circumstances,” she noted. This underscores the importance of seeking professional legal advice to avoid costly errors. Another significant challenge identified by Manuela is the issue of poorly prepared or entirely absent wills, especially within blended families. “In cases of intestate estates or poorly drafted DIY wills, disputes between step-parents and stepchildren can become highly contentious,” she explained. Manuela highlighted that addressing these issues early by consulting professionals can save families considerable financial and emotional stress. Colleen, people2people Perth Legal Team Leader, echoed these sentiments while also shedding light on another technological shift within the industry. “The rise of teleconferencing has created new opportunities for accessibility,” she noted. “Clients can now engage with their solicitors from the comfort of their homes, removing barriers such as travel or intimidation often associated with formal office visits.” This innovation not only broadens access to legal services but also fosters a client-centred approach that prioritises convenience and comfort. Adding to this, Colleen also pointed out the growing emphasis on educating clients about the legal implications of technological advancements, particularly in property law. “Clients often express concerns about the move to digital titles, but by guiding them through these processes, we ensure they feel confident in these transitions,” she said. Such proactive education helps mitigate apprehensions and underscores the importance of transparent communication in the legal industry. Navigating the Legal Landscape For those in the legal field or seeking legal services, the following strategies can help navigate the current market: Embrace Technology : Leveraging online platforms and digital tools can streamline processes and enhance efficiency. Ensure you understand the capabilities and limitations of these tools to use them effectively. Invest in Professional Advice : While AI tools can provide general information, nothing replaces the expertise of a qualified solicitor. Engaging with professionals can prevent costly mistakes and ensure tailored advice. Prioritise Estate Planning : Whether creating or updating a will, work with a professional to ensure it meets legal requirements and accurately reflects your intentions. Adapt to Client Needs : Teleconferencing and other flexible options are here to stay. Embrace these innovations to make legal services more accessible and client-friendly. Stay Educated : Keeping up with industry trends, such as changes in property law and technological advancements, is essential for both clients and practitioners. As the legal market across Australia continues to evolve, adapting to these changes while maintaining a commitment to quality service will be key. By embracing technology, prioritising professional advice, and focusing on client needs, legal professionals can navigate these challenges and seize the opportunities that lie ahead.