The job market in Australia, New Zealand, and the United Kingdom is experiencing significant turbulence, with a sharp increase in job applications juxtaposed against a slowdown in job creation. Leading recruitment platform JobAdder’s Q1-Q2 2024 State of Market Report reveals the pressures facing recruiters and in-house talent acquisition teams as they navigate an unsustainable surge in candidates amid tightening opportunities.
Applications Spike as Job Openings Decline
In Australia, the average number of job applications for roles managed by recruitment agencies rose dramatically, climbing from 26.8 in Q2 2023 to 37.8 in Q2 2024: a staggering 41% year-on-year increase and a 165% rise since 2022. Similarly, New Zealand witnessed applications per job rising from 27.3 to 43.9 during the same period, reflecting a 61% annual surge.
The United Kingdom also faced a significant rise, with average applications per job increasing from 12.6 in Q2 2023 to 16.6 in Q2 2024. This marks a 62% year-on-year increase in Q1 2024 and a 32% rise in Q2. Nationally, candidate supply in the UK has surged by an astonishing 137% since Q2 2022.
Despite this influx, job creation has declined across all three regions. In Australia, the average number of jobs per account fell from 61.9 in Q2 2023 to 58.9 in Q2 2024. New Zealand experienced a sharper drop, from 56.5 to 44.5, and the UK saw a decrease from 52 to 47.7 over the same period.
Martin Herbst, CEO of JobAdder, emphasised the challenge: “Recruiters are no longer struggling to find candidates – they’re inundated with them. The real challenge now is filtering through the high volume of applications to identify the most skilled and qualified candidates. This task has become even more daunting as recruitment teams have shrunk, and the pressure to streamline workflows has intensified.”
Temporary Roles Gain Ground Amid Economic Uncertainty
The downturn in job creation has seen a shift away from permanent roles, with businesses favouring temporary and contract placements. This trend reflects broader economic uncertainty and a preference for flexible hiring practices.
In Australia, temporary roles made up 79.4% of agency placements in Q2 2024, up from 76.4% the previous year. New Zealand mirrored this, with temporary roles accounting for 87.2% of placements, a slight increase from 86.4%. Meanwhile, in the UK, temporary roles rose from 41% in Q2 2023 to 42.5% in Q2 2024.
Herbst highlighted the importance of adaptation for recruitment agencies: “As businesses cut back on permanent hires and bring recruitment in-house, agencies risk losing ground. To stay competitive, they should consider diversifying their offerings, and expanding into temp placements can be a strategic move to drive growth and revenue.”
Job Boards: A Double-Edged Sword
Job boards and ad channels have grown in popularity but present inefficiencies. Applications through job boards accounted for 78% of recruitment agency applications in Q2 2024, up from 73% in 2023 and 57% in 2022. However, placements through job boards take significantly longer. In Australia, they take 16.3 days more and 15.2 days more in New Zealand than for permanent roles. In the UK, this delay is 8.9 days.
In contrast, placements sourced through internal databases or proactive channels are completed up to three weeks faster. This underscores the inefficiency of relying heavily on job boards, as they often flood recruiters with unqualified candidates, wasting time and resources.
Herbst explained the risks: “At the time, Job boards might seem like a quick fix, but they often flood recruiters with unqualified candidates, leading to wasted time and resources. Proactive sourcing from internal databases allows recruiters to be more strategic, offering a clear advantage in today’s competitive job market.
“With the rise in using job boards and ad channels, recruitment agencies face significant risks; companies prefer not to use agencies for candidates they can find themselves. As budgets tighten, agencies must demonstrate their value through strategic approaches and strong networks.”
Shifts in Sourcing Strategies
In-house talent acquisition teams across ANZ are experiencing similar trends. Applications from job boards have risen sharply, while those from internal databases have fallen from 8% in late 2023 to 5.5% in 2024. Herbst advises these teams to rethink their sourcing strategies: “I’d advise these teams to reconsider their sourcing strategies to improve efficiency and candidate quality,” says Herbst.
The Need for Strategic Adaptation
JobAdder’s findings highlight the need for both recruitment agencies and in-house talent teams to adapt to the changing landscape. Temporary placements, proactive sourcing, and streamlined workflows will be crucial for maintaining efficiency and securing top talent in a challenging market
The recruitment sector is at a crossroads. With more candidates than ever competing for fewer opportunities, recruiters must evolve, embracing strategic and diversified approaches to remain relevant and effective.
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ABOUT THE AUTHOR
Martin Herbst
CEO at JobAdder
Martin is the CEO of JobAdder, with over 20 years experience launching and scaling tech businesses across the globe. Adept in fostering customer-centric cultures, Martin’s vision for JobAdder is to provide a recruitment platform centred on design-led usability, enhanced by e-learning and support and augmented by the transformative power of AI, thus fulfilling the company’s purpose to make recruitment more efficient and joyful for everyone.
