Queensland labour market update:
Key trends and insights for 2025
Queensland’s labour market in 2025 is showing signs of strain, with employers facing increasing hiring pressures. The top challenges include competition for talent (23%), irrelevant applications (19%), and a high proportion of overseas applications (14%). A notable 12% drop in overall applications and 11% citing candidate unreliability highlight ongoing recruitment difficulties.
Despite these hiring challenges, job seeker sentiment remains strong, with 72% identifying as active job seekers and 24% as passive, indicating a candidate-driven market. However, a -4.2% decrease in job ad volumes could signal tightening job availability or increased employer hesitancy in the face of uncertainty.
The unemployment rate sits at a low 3.9%, suggesting a tight labour market, while wage growth continues upward — +4.3% in the public sector and +3.4% in the private sector. These conditions may push businesses to refine their attraction and retention strategies to stay competitive. Looking ahead, talent shortages and rising wage expectations will likely shape hiring trends throughout 2025.
Employment trends impacting Queensland's labour market in 2025
What key factors are driving talent retention in 2025?
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 2025?
What is the financial impact of a slow hiring process?
In a competitive job market, speed matters—especially when it comes to hiring. A slow recruitment process can lead to missed opportunities, increased costs, and added pressure on existing teams. But what is the true financial impact of delayed hiring? How much does it cost businesses to lose top candidates, extend vacancies, and strain productivity?
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?
Employment trends impacting Queensland's labour market in 2024
What key factors are driving talent retention in 2025?
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 2025?
What is the financial impact of a slow hiring process?
In a competitive job market, speed matters—especially when it comes to hiring. A slow recruitment process can lead to missed opportunities, increased costs, and added pressure on existing teams. But what is the true financial impact of delayed hiring? How much does it cost businesses to lose top candidates, extend vacancies, and strain productivity?
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 key factors are driving talent retention in 2025?
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. There’s also a growing trend of investing in employee experience—offering 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.
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 today’s workforce.
What key factors are driving talent retention in 2025?
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.
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. There’s also a growing trend of investing in employee experience—offering 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.
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 today’s workforce.
What is the financial impact of a slow hiring process?
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.
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 impact—highlighting the urgent need to align strategies with evolving employee expectations.
What is the financial impact of a slow hiring process?
A slow hiring process can cost more than just time—it can significantly impact a company’s bottom line. Extended vacancies lead to lost productivity, increased pressure on existing staff, and the potential loss of top talent to faster-moving competitors. In 2025’s competitive market, speed and efficiency in recruitment are more critical than ever. What are the true financial risks, and how can employers streamline hiring without sacrificing quality?
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.
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 impact—highlighting the urgent need to align strategies with evolving employee expectations.
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 impact—highlighting 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 retention—especially 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 impact—highlighting 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.
Our Queensland Recruitment Team at people2people
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