Recruitment Trends 2024 in Australia: What to Expect

Author Image Written by Garth Belic

Learn about the latest recruitment trends in Australia for 2024, including AI in hiring, rising salaries, remote work, and skills-based hiring. Stay competitive.

As a business owner or HR manager in Australia, staying on top of the latest recruitment trends is crucial for attracting and retaining top talent.

In this article, we’ll explore the key trends shaping the recruitment landscape in 2024, providing actionable insights to help you adapt your strategies and stay competitive. Business leaders play a big role in adapting to and shaping these recruitment trends, aligning talent strategies with broader business goals to navigate the evolving workforce dynamics effectively.

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According to a recent survey, 76% of Australian professionals are considering a job change in 2024, up 15% from the previous year. HR functions across industries should brace themselves for increased competition and churn.

To attract and create the best sense of HR talent development, consider promoting the following in your job postings:

  • Competitive salaries and benefits
  • Opportunities for career growth and development
  • Flexible work arrangements
  • A strong employer brand and positive company culture

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The white-collar sector is predicted to grow only 0.4%, the slowest since 2017. This reflects broader global workforce challenges such as declining employee engagement, the need for reskilling a significant portion of the workforce, and an increasing reliance on contingent labour to fill skills gaps and maintain a competitive edge. Online job ads also decreased by 9.1% in 2023.

However, there is some good news on the horizon. Growth is expected to pick up in late 2024 and beyond, especially in CBD-based jobs, as Australia responds to global workforce trends. This means that businesses should:

  • Be strategic in their hiring decisions
  • Focus on critical roles that drive growth and innovation
  • Consider upskilling and reskilling existing employees

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Advertised salaries on SEEK grew even faster at 4.6%. This trend is expected to continue in 2024, with a median salary increase of 4% predicted across industries and even higher in sectors like finance and IT.

To remain competitive in this environment, employers should:

  • Review and adjust their compensation packages
  • Consider offering non-monetary benefits and perks
  • Communicate the total value of their employee offerings

This upward trend in wages also aligns with efforts to narrow the gender pay gap, with some regions having implemented pay transparency legislation to support these efforts.

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While employees want to continue working from home, some employers are pushing for a return to the office. The most likely outcome is the widespread adoption of hybrid work models as a compromise.

To make hybrid work successful, employers need to:

  • Develop clear strategies and guidelines
  • Invest in the right tools and technologies
  • Foster a culture of trust and accountability
  • Prioritise employee well-being and work-life balance

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As both recruiters and candidates become more AI-savvy, there is an opportunity to leverage these tools to reduce bias and improve the overall candidate experience. 

AI benefits the hiring process significantly, especially in engaging with job seekers, screening applicants, scheduling interviews, conducting background and reference checks, and automating various manual tasks related to recruitment.

To effectively integrate AI into your recruitment plan:

  • Identify areas where AI can add value throughout the different stages of the hiring process
  • Choose the right tools and platforms
  • Ensure that AI is used ethically and transparently
  • Continuously monitor and adjust your AI-powered processes

Plus, talent leaders increasingly leverage AI tools to enhance recruitment strategies, including AI-powered tools for skills assessment, AI-generated job descriptions and communications, and streamlining recruitment tasks. This trend is expected to grow as more talent leaders embrace AI in 2024.

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Implementing talent gap analysis and focusing on hard and soft skills are crucial to bridging these gaps.

To embrace skills-based hiring and effectively close the skills gaps:

  • Define each role's key skills and competencies, including a balance of technical expertise and soft skills, which are increasingly important in evaluating candidates for their adaptability and communication abilities.
  • Use structured interviews and assessments to evaluate candidates, focusing on their technical abilities and soft skills, which are pivotal for a dynamic and agile workforce.
  • Provide training and resources for hiring managers to help them recognise and mitigate the impact of skills shortages through career coaching, training budgets, and apprenticeship programs.
  • Consider alternative talent pools and non-traditional candidates, leveraging internal and external recruitment strategies to enhance talent mobility and workforce preparation for the evolving nature of work.

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It fosters innovation and creativity and attracts and retains top talent, who are increasingly inclined towards companies that prioritise diversity and inclusion. 

Creating a fair and inclusive culture remains a top priority for businesses in 2024. It is also the right thing to do and helps attract Gen Z candidates who highly value diversity, equity, and inclusion (DEI).

To strengthen your DEI efforts:

  • Evaluate your existing DEI programs and identify areas for improvement
  • Set clear and measurable DEI goals and targets
  • Engage employees at all levels in DEI initiatives
  • Regularly communicate your DEI progress and achievements

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  • Expect strong demand but also high competition for HR roles
  • Overall job growth modest but rebounding, especially in CBDs
  • Wages are rising faster than usual, 4%+ increases in common
  •  Hybrid work is the new norm; employers must adapt
  •  AI is increasingly used in recruitment; learn to leverage it
  • Hire for skills and potential over degrees and qualifications
  • Prioritise building a diverse, equitable, and inclusive culture