South Australia 2025 employment market insights

Key takeaways from people2people's 2025 Employment and Salary Report

South Australia 2025 employment market insights

Key takeaways from people2people's 2025 Employment and Salary Report

South Australia labour market update:

Key trends and insights for 2025

As we move through 2025, South Australia’s labour market reflects a mix of opportunity and ongoing hiring challenges. The unemployment rate sits at 4.1%, a relatively stable figure, suggesting a steady but competitive jobs market. However, a -2.6% drop in job ads indicates a possible slowdown in hiring activity. This could be tied to high employer frustration around talent shortages, with 26% citing “competition for talent” as their top hiring challenge.

Other key hurdles include an influx of overseas and irrelevant applications (20% and 19% respectively), as well as candidate ghosting (16%) and offer-stage negotiations (14%). These issues could signal both a more selective job seeker pool and increasing mobility.

Despite this, job seeker sentiment remains strong—67% are actively looking, and 29% are passive, offering a rich talent pool if approached correctly. Wage growth is encouraging, with public wages up 3.2% and private wages up 3.0%, which may help attract and retain talent. In 2025, employers will need to sharpen their value proposition to stay competitive.

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Employment trends impacting South Australia's labour market in 2025

Employment trends impacting South Australia's labour market in 2024

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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 seekers’ 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.

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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. 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 seekers’ 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.

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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.

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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.

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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 today’s 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. 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.

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Why are you losing your staff in 2025?

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 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 today’s 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. 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.

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Our South Australia  Recruitment Team at people2people

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