Western Australia labour market update:
Key trends and insights for 2025
Western Australia's labour market in early 2025 is facing notable pressures. Job ad volumes have dropped by 12.9%, signalling a cautious hiring approach from employers. Despite this, 73% of the workforce identify as active job seekers, suggesting strong candidate availability—though not necessarily with the right fit. This aligns with the state's top hiring challenge: irrelevant applications (25%), followed by competition for talent (21%) and overseas applications (16%), which may reflect ongoing skills mismatches.
The unemployment rate sits at a steady 3.5%, which generally indicates a stable market, but the decrease in applications (12%) and candidate unreliability (11%) pose risks to hiring efficiency.
On the wage front, private sector wages have grown by 3.5%, outpacing the 2.1% rise in public wages—a trend that may attract more talent into the private sector and increase wage pressures.
Heading into the rest of 2025, businesses in WA will need to focus on refining attraction strategies and improving job matching tools to overcome hiring inefficiencies in a tightening and increasingly selective market.
Employment trends impacting Western Australia's labour market 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?
Why are you losing your staff in 2025?
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 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?
Employment trends impacting Western Australia's labour market in 2024
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?
Why are you losing your staff in 2025?
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 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?
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.
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.
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.
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.