Recruitment software platform JobAdder has released the findings of its Q1-Q2 2023 State of Market: ANZ Talent Acquisition Report and ANZ & UK Recruitment Report based exclusively on JobAdder platform data. The reports indicate a recalibration in the Australian and New Zealand employment market, marked by a minor decrease in job creation alongside a surge in job applications.
For the past few years, recruiters faced the challenge of candidate shortages due to the high demand driven by job growth, resulting in talent holding significant leverage and power. With job growth slowing, these market fluctuations have reversed this dynamic, providing talent acquisition and agency recruiters the opportunity to play a more impactful and strategic role in their organisations.
CEO of JobAdder, Martin Herbst, said: “JobAdder’s recent reports present a compelling shift in the recruitment landscape. While job creation has experienced a minor decline from the large influxes we saw in 2022, job applications have surged. This implies talent acquisition is transitioning from a candidate-centric market to a market ripe with potential for recruiters. This shift could catalyse recruiters to take on a more strategic role in shaping the growth trajectory of the businesses they serve.
“It’s an exciting time for the recruitment industry. After grappling with candidate shortages due to unprecedented job growth, the tables are turning. The abundance of job applications gives recruiters the opportunity to have a greater selection of potential candidates and reassess their talent acquisition strategies. The reports’ findings serve as a timely reminder that the world of recruitment is ever-changing. Despite the challenges, it’s clear that exciting opportunities are on the horizon for those ready to adapt and seize them,” Mr Herbst added.
JobAdder’s talent acquisition and recruitment agency reports reveal that power is swinging back into the hands of recruiters with job creation slowing and applications per job increasing in Australia. The past two years have seen historically low unemployment rates in Australia causing recruiters to compete to find skilled candidates and fill a high volume of job openings.
The tides appear to be turning as there’s been a noticeable surge in applications per job across talent acquisition and recruitment agencies, with a jump from 13.9 to 24.5 and 15.2 to 24.3 respectively in Q2 this year, compared to Q2 2022. Simultaneously, data reveals a slight dip in job creation – a drop from 68.2 in Q2 2022 to 58.6 in Q2 this year for recruitment agencies and a similar decline from 46.0 to 40.1 for talent acquisition.
As the job market recalibrates, recruiters are now positioned to exercise greater control over the process. They will have a larger pool of candidates available and can make more meaningful decisions in who they choose and how they align with the specific needs and direction of the business. To navigate this new terrain effectively, recruiters will need to maximise the use of available tools to streamline the recruitment process and identify potential perfect matches more efficiently.