Australia 2025 employment market insights

Key takeaways from people2people's 2024 Employment and Salary Report

Australia 2025 employment market insights

Key takeaways from people2people's 2024 Employment and Salary Report

Australia labour market update:

Key trends and insights for 2024

The Australian labour market is undergoing significant changes as 2024 begins, following a year of mixed economic signals. In 2023, a net migration surge of over 400,000 people reinvigorated certain industries, particularly hospitality, healthcare, and construction, while simultaneously increasing competition for entry-level and mid-tier roles. This migration influx has offset some of the labour shortages seen in previous years but has also heightened challenges for job seekers, especially in urban centres like Sydney and Melbourne, where cost-of-living pressures remain high.

The unemployment rate in Australia closed 2023 at 3.7%, reflecting a slight increase from previous years as interest rate hikes and inflationary pressures dampened economic activity. While this rate remains historically low, there are early signs of softening demand in key industries like retail and real estate, where consumer confidence has weakened. For employers, this means the candidate market has eased marginally, making it less competitive to source talent compared to 2022. However, attracting high-quality, skilled professionals in sectors like technology and engineering remains a pressing challenge.

Economic conditions in 2024 are expected to be shaped by further monetary tightening to combat inflation, potentially driving unemployment rates higher. As a result, job growth is forecast to slow, with regional markets likely to face the most significant headwinds due to a reliance on industries more vulnerable to economic shifts, such as agriculture and tourism. Despite these challenges, certain sectors, including renewable energy, aged care, and infrastructure development, are expected to remain resilient, offering pockets of opportunity for both job seekers and employers.

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Employment trends shaping Australia’s labour market in 2024

Why are employees leaving jobs in 2024?


Employee retention and resignation remain significant challenges in today’s competitive workforce. Why are employees leaving their jobs, and what strategies can employers use to retain top talent? How does leadership influence employee engagement, and what role do workforce trends play in shaping supportive workplaces and addressing evolving career priorities in 2024?

Key factors driving talent retention in 2024


Talent retention is a crucial focus in today’s competitive workforce. What drives employee loyalty, from career opportunities to work-life balance? How can businesses align retention strategies with employee expectations and bridge gaps in understanding between managers and staff to foster meaningful, engaging, and productive workplace environments in 2024?

What counteroffers included in 2024


Talent shortages have made counteroffers a key challenge in recruitment. Why is understanding jobseekers' reasons for leaving and reactions to counteroffers crucial for hiring managers? How can proactive engagement, clear communication, and early issue resolution secure commitment and prevent losing top talent during the notice period? Stay ahead of your competitors in a tough market.

Why employees are leaving their jobs in 2024

Employee retention and resignation are ongoing challenges in today’s dynamic workforce. Understanding why employees leave and how companies can improve retention strategies is crucial for fostering long-term engagement and productivity. In recent years, the factors driving employee resignations have evolved, highlighting the importance of addressing career development, workplace culture, and leadership. What are the root causes of employee resignations, the strategies businesses are employing to retain talent, and the broader implications for workforce management in 2024?

One of the most significant reasons employees quit is the lack of career opportunities, which continues to be a leading factor in 2024. Employees also cite low pay, management issues, and unsupportive workplace cultures as additional barriers to staying. Other notable factors include insufficient flexibility, poor work-life balance, and the absence of adequate employee benefits. These challenges underscore the necessity for organizations to evaluate their internal structures and prioritize creating an environment that meets the evolving needs of their workforce.

To combat rising attrition rates, organizations are focusing on innovative retention strategies. In 2024, increased base pay and investments in training and development are among the most prominent approaches. Companies are also placing greater emphasis on retaining critical roles, offering more flexible work arrangements, and facilitating lateral promotions to encourage internal mobility. These strategies reflect a shift toward building a more inclusive and supportive workplace, which helps employees feel valued and motivated to stay.

Unlock full insights

Why employees are leaving their jobs in 2024

Employee retention and resignation are ongoing challenges in today’s dynamic workforce. Understanding why employees leave and how companies can improve retention strategies is crucial for fostering long-term engagement and productivity. In recent years, the factors driving employee resignations have evolved, highlighting the importance of addressing career development, workplace culture, and leadership. What are the root causes of employee resignations, the strategies businesses are employing to retain talent, and the broader implications for workforce management in 2024?

One of the most significant reasons employees quit is the lack of career opportunities, which continues to be a leading factor in 2024. Employees also cite low pay, management issues, and unsupportive workplace cultures as additional barriers to staying. Other notable factors include insufficient flexibility, poor work-life balance, and the absence of adequate employee benefits. These challenges underscore the necessity for organizations to evaluate their internal structures and prioritize creating an environment that meets the evolving needs of their workforce.

To combat rising attrition rates, organizations are focusing on innovative retention strategies. In 2024, increased base pay and investments in training and development are among the most prominent approaches. Companies are also placing greater emphasis on retaining critical roles, offering more flexible work arrangements, and facilitating lateral promotions to encourage internal mobility. These strategies reflect a shift toward building a more inclusive and supportive workplace, which helps employees feel valued and motivated to stay.

Unlock full insights

Key factors driving talent retention in 2024

Talent retention remains a top priority for organizations in today’s competitive job market. With evolving workforce dynamics, understanding what matters most to employees and job seekers is critical for employers to develop strategies that foster loyalty and engagement. Exploring key retention levers, including career opportunities, management support, and work-life balance, reveals how companies can better align their efforts with employee priorities to create meaningful workplace experiences.

In 2024, career opportunities emerged as the most significant factor driving retention, with a close focus on training and development, management support, and trust. While hiring managers and employees largely agree on the importance of financial benefits, the biggest disconnect lies in their views on training and development. Employees prioritize career growth and learning opportunities, while managers may underestimate their value. This gap highlights the need for organizations to bridge the divide and align retention strategies with employee expectations.

Moreover, factors such as work-life balance, flexible working, and the sense of purpose in work continue to play a vital role in retention. Company culture, job security, and mental health support remain consistent priorities, reflecting the increasing emphasis on holistic employee well-being. While environmental contributions and community engagement rank lower on the list, they still hold value for a significant portion of employees. As retention strategies evolve, understanding these trends can help organizations stay ahead in attracting and retaining top talent.

Unlock full insights

Key factors driving talent retention in 2024

Talent retention remains a top priority for organizations in today’s competitive job market. With evolving workforce dynamics, understanding what matters most to employees and job seekers is critical for employers to develop strategies that foster loyalty and engagement. Exploring key retention levers, including career opportunities, management support, and work-life balance, reveals how companies can better align their efforts with employee priorities to create meaningful workplace experiences.

In 2024, career opportunities emerged as the most significant factor driving retention, with a close focus on training and development, management support, and trust. While hiring managers and employees largely agree on the importance of financial benefits, the biggest disconnect lies in their views on training and development. Employees prioritize career growth and learning opportunities, while managers may underestimate their value. This gap highlights the need for organizations to bridge the divide and align retention strategies with employee expectations.

Moreover, factors such as work-life balance, flexible working, and the sense of purpose in work continue to play a vital role in retention. Company culture, job security, and mental health support remain consistent priorities, reflecting the increasing emphasis on holistic employee well-being. While environmental contributions and community engagement rank lower on the list, they still hold value for a significant portion of employees. As retention strategies evolve, understanding these trends can help organizations stay ahead in attracting and retaining top talent.

Unlock full insights

What counteroffers included in 2024

Due to talent shortages, many employers might consider counteroffering to retain key staff, adding a new layer of complexity to the recruitment process. To avoid any surprises, all hiring managers undertaking a recruitment process must have a clear understanding of candidates' key reasons for leaving their current role, as well as how they would react in the case of a counteroffer

Upon extending an offer, hiring managers must transition swiftly into a proactive engagement strategy. This entails maintaining open lines of communication with the new hire, providing insight into the company culture, and fostering a sense of belonging even before their official start date. By involving them in relevant discussions, introducing key team members, and offering resources for personal and professional development, managers can instill a strong sense of anticipation and commitment.

Vigilance against potential counteroffers is equally critical. Research indicates that many employees reconsider their decisions during the notice period, especially when confronted with lucrative counteroffers. To preempt such scenarios, hiring managers should maintain candid conversations with the new hire, addressing any concerns or reservations promptly.

Unlock full insights

What counteroffers included in 2024

Due to talent shortages, many employers might consider counteroffering to retain key staff, adding a new layer of complexity to the recruitment process. To avoid any surprises, all hiring managers undertaking a recruitment process must have a clear understanding of candidates' key reasons for leaving their current role, as well as how they would react in the case of a counteroffer

Upon extending an offer, hiring managers must transition swiftly into a proactive engagement strategy. This entails maintaining open lines of communication with the new hire, providing insight into the company culture, and fostering a sense of belonging even before their official start date. By involving them in relevant discussions, introducing key team members, and offering resources for personal and professional development, managers can instill a strong sense of anticipation and commitment.

Vigilance against potential counteroffers is equally critical. Research indicates that many employees reconsider their decisions during the notice period, especially when confronted with lucrative counteroffers. To preempt such scenarios, hiring managers should maintain candid conversations with the new hire, addressing any concerns or reservations promptly.

Unlock full insights

Employment trends shaping Australia’s labour market in 2024

Why are employees leaving jobs in 2024?


Employee retention and resignation remain significant challenges in today’s competitive workforce. Why are employees leaving their jobs, and what strategies can employers use to retain top talent? How does leadership influence employee engagement, and what role do workforce trends play in shaping supportive workplaces and addressing evolving career priorities in 2024?

Key factors driving talent retention in 2024


Talent retention is a crucial focus in today’s competitive workforce. What drives employee loyalty, from career opportunities to work-life balance? How can businesses align retention strategies with employee expectations and bridge gaps in understanding between managers and staff to foster meaningful, engaging, and productive workplace environments in 2024?

What counteroffers included in 2024


Talent shortages have made counteroffers a key challenge in recruitment. Why is understanding jobseekers' reasons for leaving and reactions to counteroffers crucial for hiring managers? How can proactive engagement, clear communication, and early issue resolution secure commitment and prevent losing top talent during the notice period? Stay ahead of your competitors in a tough market.
Unlock full insights

2024 market insights across Australia

Key labour market trends shaping recruitment and salaries in 2024

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