The year 2023 has ushered in a seismic shift in the recruitment landscape. For years, the ‘candidate market’ dominated, where job seekers were in the driver’s seat, having multiple employment options at their disposal. Yet, as we approach the close of the year, there’s a discernible transition to a ‘client market’. This change hasn’t been sudden or without reasons; it’s a culmination of numerous factors coming together in a short span of three months.
A candidate market, characterized by its multitude of vacancies and fewer professionals to fill them, seemed like an almost perpetual state. Employers had to be competitive in their offerings to attract the right talent. On the flip side, a client market means more candidates vying for limited positions, offering companies the luxury to cherry-pick the best fit for them.
The question arises: How did this substantial shift occur over a mere quarter? The reasons are multifaceted and deeply interconnected, ranging from demographic changes to global events and generational behaviours.
Demographic Shifts and Immigration Patterns
Population Migration: Over the last three months, there’s been a noticeable population shift due to migration between states. The allure of better opportunities, quality of life, and infrastructural developments have contributed to this internal movement, impacting the local job markets.
Immigration Post-COVID: The pandemic dramatically affected global immigration. As nations shuttered their borders and introduced stringent measures, immigration came to a near halt. But as we emerged from the shadows of COVID-19, borders started reopening. Australia, like many countries, started witnessing an uptick in its immigration rate. With Queensland (QLD) standing out as a particularly desirable state for many immigrants, the influx meant a surplus of job seekers in the market.
Why QLD? The attractiveness of Queensland isn’t random. It’s set to host the Olympics, which has brought significant infrastructural and societal upgrades to the state. The global event has acted as a magnet for many, seeking both short-term and long-term opportunities. Moreover, the 10-year growth plan for QLD promises a bright future, making it a hotspot for both domestic migrants and international immigrants.
The Generational Impact and Job Market Dynamics
Boomers Holding Their Ground: Historically, older generations made way for the younger lot, retiring and allowing the subsequent generations to move up the ladder. However, today’s Baby Boomers are bucking this trend. Many are choosing to stay in their roles for extended periods. Whether it’s due to personal financial reasons, passion for their work, or simply the need to remain active, this decision is reducing the number of positions available for the next generations.
Older Generations on the Move: Contrary to the image of older generations being settled in their roles, a significant number are now becoming mobile in their jobs. The value of experience cannot be overstated. Companies, in a client market, often prioritize experienced professionals over fresh talent. This preference means that while the older generations continue to occupy significant positions, they are also being lured by newer opportunities, further constricting the job market for younger candidates.
The Current Job Market Scenario and Candidate Approach
Increased Competition: The current statistics are a testament to the changing times. On average, each job ad is now attracting around 15 candidates, making the competition fiercer than ever. With this ratio, candidates can no longer rely on the same strategies they used in a candidate-centric market.
Navigating the New Terrain: With the job market dynamics changing, candidates need to reassess their approach. It’s not just about seeking a job anymore; it’s about standing out in a crowd. Whether you are in an existing role or seeking a new one, flexibility, continuous learning, and networking have become more crucial than ever.
Changed Expectations: Navigating the Tug of War between Clients and Candidates
The dynamics of the job market have shifted remarkably. As we witness this tectonic transformation from a candidate-driven to a client-driven ecosystem, there’s another nuanced, yet crucial, transformation taking place: the altered expectations from both ends of the spectrum.
Work-Life Balance: The call for a balanced work-life isn’t new, but its champions primarily belong to the younger generation. With flexibility, remote work, and mental well-being gaining prominence, younger candidates are challenging the traditional 9-to-5 grind in an office environment. This preference for balance often leaves them at odds with the older generations, who may be more accustomed to, and accepting of, traditional workplace norms. It is here that the seasoned workforce finds an unexpected advantage. Their willingness to adapt to traditional roles provides them with more opportunities, while their younger counterparts are more steadfast in their demand for flexible work arrangements.
Shift in Availability – An Evolving Landscape: Queensland is on the brink of a massive expansion in terms of employment opportunities. A staggering additional 281,000 workers are projected to be needed by 2025, marking an increase of 10.9 per cent. But the story doesn’t end with just the creation of these new roles.
Turnovers, driven by various factors including retirement, changing professions, or simply people transitioning between jobs, further amplify the availability of positions. With the churn rate considered, Queensland may witness an overwhelming 500,000+ job opportunities in the forthcoming years.
Staying informed and updated is the key to leveraging these opportunities. Platforms like Labour Market Insights (LMI) provide invaluable data about employment trends, unemployment rates, participation metrics, and growth forecasts, ensuring candidates and employers alike can make informed decisions.
Priority Sectors – Catching the Next Big Wave in QLD: The growth forecast for Queensland is undoubtedly impressive. But a deeper dive reveals that some sectors will be riding the crest of this wave more prominently than others. One standout sector is construction.
Queensland’s construction industry is gearing up for an ambitious journey. The sector is set on boosting its productivity by an impressive 20% relative to pre-pandemic figures. With a massive $13 billion in projects lined up, the industry faces a unique challenge. Despite the multitude of projects, the workforce is noticeably thin. This situation sets the stage for an urgent demand for skilled professionals. As Queensland charges ahead, aligning with pivotal sectors like construction can be the key to not just observing this growth but actively thriving within it.
Following this momentum, the broader construction industry is expected to see primary construction roles soar in the near future. This uptrend will naturally result in a growing demand for secondary roles.
Furthermore, the amalgamation of various migration trends, coupled with the anticipation of the 2032 Olympics, foreshadows an upswing in the demand for Professional and Business support roles.
In the wake of this expansion, Queensland’s public sector is preparing for an influx of professionals across areas such as administration, office support, human resources, information technology, finance, and beyond.
Navigating the intricate maze of evolving job markets demands both awareness and adaptability. As the scales tip from a candidate market to a client market, understanding these changed dynamics becomes pivotal. Whether it’s the increased emphasis on work-life balance, the surge in opportunities in Queensland, or identifying priority sectors poised for exponential growth, being informed is the key.
In such transformative times, APSG stands as a beacon for both candidates and employers. Our industry-leading insights, coupled with our commitment to offering tailored solutions, ensures that you’re not just prepared for the future, but are also poised to seize it. Engage with APSG to unlock the door to unparalleled opportunities and guidance in this evolving landscape. Contact APSG via email Info@apsgtalent.com.au or call 07 3523 3686.
THE AUTHOR
Nathanael Deleon
Founder & Director – Australian Project Solutions Group
