Migration: A Moving Target for Employers

Whether you’re trying to fill roles or find your next opportunity, it’s clear: hiring in Australia is being shaped by some serious economic shifts in 2025.

From migration policy changes to wage pressures, understanding what’s happening in the background can help you make smarter decisions.

Australia’s migration story has changed rapidly over the past year. After a massive wave of arrivals (around 245,000 long-term migrants by mid-2025), the federal government is now tightening migration—with plans to bring net migration down to around 250,000 annually, compared to 380,000 last year.

That’s a big shift, and it’s already raising questions for employers.

On the one hand, recent migration helped keep the economy afloat, even staving off a recession. On the other hand, cuts to skilled visa places could leave many industries especially accounting, healthcare, construction, aged care and tech—short-staffed.

But there’s some good news:

• Skilled Independent visa (subclass 189) allocations are up 20%
• Visa processing is expected to speed up by 30%
• Regional visa programs are expanding

What it means for hiring: If you’re relying on overseas talent, now’s the time to get strategic. The window is narrowing, so faster processing could help—but only if you move quickly. 

Watch out for policy maneuvers late in 2025.

Balancing Wages & Inflation

While wage growth is happening, We all know it’s not keeping pace with inflation. Real wages are still down 4.8% from pre-pandemic levels, making Australia one of the worst performers in the OECD on this front.

What’s moving the needle?

• Wage growth is strongest in childcare and aged care
• Public sector pay is playing a huge role—accounting for about 35% of wage increases

At the same time, inflation has finally cooled, sitting at 2.1% as of June 2025—within the RBA’s target range. But don’t be fooled: while inflation is “under control,” living costs are still high, and candidates are definitely feeling the pinch.

What it means for hiring: Employers are under pressure to offer more competitive salaries, even when budgets are tight.

Don’t be shocked  if candidates are negotiating harder—or walk away for a better offer. Benchmark salaries often and don’t lose talent over 5K gap.

Public vs Private: Who’s Hiring?

Here’s a surprising stat: more than 80% of new jobs in the past two years have come from government-funded sectors like healthcare and education.

Meanwhile, private-sector job growth? It’s been sluggish—only about 20% of the norm in 2024. That’s just 53,000 new jobs added, well below what’s needed to maintain momentum.

What it means for hiring: If you’re in the private sector, you’re competing with well-funded public roles—and that can be tough.

Consider what else you can offer: flexibility, growth, culture, or purpose-driven work can help tip the balance.

Productivity & Slow Growth: The Bigger Picture

There’s a broader economic issue at play: slow GDP growth (just 1.3% earlier this year) and stagnant productivity.

A big part of the problem? The shift toward lower-productivity jobs in the public sector, plus red tape and underinvestment.

Many business leaders are now pushing for reforms in tax, migration, and housing to get things moving again.

What it means for hiring: We’re likely to see companies invest more in upskilling, training, and digital transformation—not just more hires.

Productivity matters more than ever.

Australia’s labour market is not by any stretch unique—not enough workers in some sectors, too much competition in others, and a shifting economic landscape.

If you’re in the market for talent or job hunting right now, staying informed is half the battle.

We’ll keep you posted  with updates, insights, and real-world hiring tips.

Until then, if you need tailored advice—whether you’re hiring or looking—get in touch.