New South Wales labour market update:
Key trends and insights for 2025
Hiring in New South Wales continues to face significant hurdles in 2025, with 25% of employers citing irrelevant applications as the top hiring challenge. Other key issues include competition for talent (18%), candidate unreliability (14%), and an influx of overseas applications (13%). These factors are prolonging recruitment timelines and making quality hires more difficult to secure.
Despite these challenges, job seeker sentiment remains highly active, with 79% of individuals actively looking for work and only 2% identifying as inactive. This suggests a buoyant labour pool, likely driven by economic conditions or shifting job expectations.
However, job ad volumes have dropped by 10.4%, which may indicate reduced hiring demand or a more cautious approach from employers. Unemployment is steady at 3.9%, and wage growth remains modest, with private wages rising by 3.2% and public wages by 1.8%.
Looking ahead, employers will need to refine recruitment strategies to target suitable talent efficiently and remain competitive in a tight yet active labour market.
Employment trends impacting New South Wales's labour market in 2025
Why are you losing your staff in 2025?
Employee retention and resignation remain significant challenges in todayâs 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 2025?
What's the impact of forcing your team back to the office?
The debate around remote work continues to divide workplaces, with many organisations now mandating a full return to the office. But what is the true impact of forcing your team back in? Are businesses risking morale, productivity, and retention by removing flexibility? How can leaders strike the right balance between operational needs and evolving employee expectations in 2025?
What are the most desired employee benefits in 2025?
In 2025, the landscape of employee benefits is evolving to meet the changing priorities of the workforce. But what specific benefits are employees seeking most? How can organizations tailor their packages to align with these expectations? Getting it right could be the difference between retaining top talent and losing them to the competition.
Employment trends impacting New South Wales's labour market in 2024
Why are you losing your staff in 2025?
Employee retention and resignation remain significant challenges in todayâs 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 2025?
What's the impact of forcing your team back to the office?
The debate around remote work continues to divide workplaces, with many organisations now mandating a full return to the office. But what is the true impact of forcing your team back in? Are businesses risking morale, productivity, and retention by removing flexibility? How can leaders strike the right balance between operational needs and evolving employee expectations in 2025?
What are the most desired employee benefits in 2025?
In 2025, the landscape of employee benefits is evolving to meet the changing priorities of the workforce. But what specific benefits are employees seeking most? How can organizations tailor their packages to align with these expectations? Getting it right could be the difference between retaining top talent and losing them to the competition.
Why are you losing your staff in 2025?
One of the most significant reasons employees continue to leave their roles in 2025 is the lack of clear career growth opportunities. This remains a leading driver of attrition, alongside low compensation, ineffective management, and workplace cultures that fail to support employee wellbeing. Increasingly, workers are also voicing concerns over limited flexibility, poor work-life balance, and outdated or insufficient employee benefits. These ongoing challenges highlight the importance for organisations to reassess their internal structures and create environments that align with the shifting values and expectations of todayâs workforce.
To address rising turnover in 2025, organisations are leaning into more holistic and proactive retention strategies. Competitive base salaries, personalised career development plans, and a strong focus on upskilling are at the forefront. Thereâs also a growing trend of investing in employee experienceâoffering hybrid work options, wellbeing initiatives, and fostering internal mobility through lateral and cross-functional moves. These efforts signal a deeper commitment to building inclusive, future-ready workplaces where employees feel supported, engaged, and empowered to grow.
Why are you losing your staff in 2025?
Employee retention and resignation are ongoing challenges in todayâs 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 2025?
One of the most significant reasons employees continue to leave their roles in 2025 is the lack of clear career growth opportunities. This remains a leading driver of attrition, alongside low compensation, ineffective management, and workplace cultures that fail to support employee wellbeing. Increasingly, workers are also voicing concerns over limited flexibility, poor work-life balance, and outdated or insufficient employee benefits. These ongoing challenges highlight the importance for organisations to reassess their internal structures and create environments that align with the shifting values and expectations of todayâs workforce.
To address rising turnover in 2025, organisations are leaning into more holistic and proactive retention strategies. Competitive base salaries, personalised career development plans, and a strong focus on upskilling are at the forefront. Thereâs also a growing trend of investing in employee experienceâoffering hybrid work options, wellbeing initiatives, and fostering internal mobility through lateral and cross-functional moves. These efforts signal a deeper commitment to building inclusive, future-ready workplaces where employees feel supported, engaged, and empowered to grow.
What's the impact of forcing your team back to the office?
In 2025, career development remains the top driver of employee retention, with increasing emphasis on training, upskilling, and supportive leadership. Trust in management and access to clear growth pathways continue to influence whether employees choose to stay. While both hiring managers and employees agree on the importance of competitive pay, the largest disconnect still lies in the perceived value of learning and development. Employees are prioritising ongoing career growth, while some managers continue to underestimate its impactâhighlighting the urgent need to align strategies with evolving employee expectations.
In addition, work-life balance, flexible working arrangements, and a strong sense of purpose remain vital to retention efforts. Organisational culture, job stability, and accessible mental health support continue to shape employee satisfaction, reflecting the growing demand for a more human-centric workplace. While environmental impact and community involvement rank slightly lower, they still matter to a meaningful portion of the workforce. As retention strategies mature in 2025, understanding and acting on these priorities will be essential to staying competitive in the talent market.
What's the impact of forcing your team back to the office?
As return-to-office mandates become more common, businesses are facing growing concerns about how these policies impact their teams. Forcing employees back into the office can affect morale, productivity, and retentionâespecially when flexibility has become a key expectation. In 2025, understanding the balance between in-person collaboration and remote autonomy is crucial. What are the risks, and how can leaders make office returns work for both business and people?
In 2025, career development remains the top driver of employee retention, with increasing emphasis on training, upskilling, and supportive leadership. Trust in management and access to clear growth pathways continue to influence whether employees choose to stay. While both hiring managers and employees agree on the importance of competitive pay, the largest disconnect still lies in the perceived value of learning and development. Employees are prioritising ongoing career growth, while some managers continue to underestimate its impactâhighlighting the urgent need to align strategies with evolving employee expectations.
In addition, work-life balance, flexible working arrangements, and a strong sense of purpose remain vital to retention efforts. Organisational culture, job stability, and accessible mental health support continue to shape employee satisfaction, reflecting the growing demand for a more human-centric workplace. While environmental impact and community involvement rank slightly lower, they still matter to a meaningful portion of the workforce. As retention strategies mature in 2025, understanding and acting on these priorities will be essential to staying competitive in the talent market.
What are the most desired employee benefits in 2025?
To remain competitive, many employers emphasize flexibility, career growth opportunities, and strong company reputations to attract candidates. However, job seekersâ expectations around returning to the office vary widely, with many requiring significant incentives, such as pay rises, to give up flexible arrangements. Additionally, timing plays a critical role, as over half of job seekers expect work flexibility to be available from their first day in a new role.
Work-from-home preferences reveal that most employees desire a hybrid model, balancing office presence with remote work. While some teams adopt shared anchor days in the office, others implement tailored individual flexibility arrangements. Employers who fail to adapt risk resignations, as flexibility continues to be a driving force in job satisfaction and decision-making for modern professionals.
What are the most desired employee benefits in 2025?
âIn 2025, the landscape of employee benefits is evolving to meet the changing priorities of the workforce. Companies are enhancing their offerings to attract and retain top talent by focusing on comprehensive health coverage, flexible work arrangements, and financial wellness programs. But what specific benefits are employees seeking most? How can organizations tailor their packages to align with these expectations? Understanding the most desired employee benefits in 2025 is crucial for businesses aiming to foster a satisfied and productive workforce.
To remain competitive, many employers emphasize flexibility, career growth opportunities, and strong company reputations to attract candidates. However, job seekersâ expectations around returning to the office vary widely, with many requiring significant incentives, such as pay rises, to give up flexible arrangements. Additionally, timing plays a critical role, as over half of job seekers expect work flexibility to be available from their first day in a new role.
Work-from-home preferences reveal that most employees desire a hybrid model, balancing office presence with remote work. While some teams adopt shared anchor days in the office, others implement tailored individual flexibility arrangements. Employers who fail to adapt risk resignations, as flexibility continues to be a driving force in job satisfaction and decision-making for modern professionals.