More than 108,000 Australians retrenched in two months as job hunting grows tougher

Australians who have lost their jobs in the latest wave of redundancies say finding new work has become an anxiety-inducing struggle, as official figures point to the toughest job market in years.

Data from the Australian Bureau of Statistics (ABS) shows 108,300 people were retrenched in July and August. If September's figures are similar, the quarterly retrenchment total will be the highest since August 2021. The national unemployment rate also climbed to 4.7 per cent in September, its highest level since October 2021. In recent months redundancies have been most acute in banking and finance, technology and professional services.

Perth-based marketing communications and events manager Saskia Tjahja lost a job she loved in mid-September, after four years helping people with disabilities enjoy playing football. Two months on, she says she is facing an environment in which people are struggling to get jobs. With her previous experience it usually took about three months to find work; this time, she says, she does not have high expectations.

Copywriter Erin Arnett has been navigating the tough market for nearly a year after losing her job in January. She says that in the past she could find something within two or three months, but not this time, and that the uncertainty has left her unsure about her future and her next move.

Figures from employment platform SEEK show job ads rose slightly, by about 0.6 per cent, in September, while applications per job rose 1.7 per cent and continue to climb. SEEK chief economist Blair Chapman said job seekers face greater competition for available roles, making the hunt more difficult, and that Australia's job market remains competitive.

LinkedIn data shows almost 70 per cent of Australians believe finding a job has become harder over the past year. The platform says the number of applicants per role has nearly doubled since early 2022 while hiring rates in Australia have fallen by 21 per cent. LinkedIn career expert Brendan Wong blames two main factors: a challenging economy and the introduction of artificial intelligence (AI), which is rapidly changing the face of work.

AI is complicating the process for employers too. Matthew Dickerson, Asia Pacific CEO of recruitment firm Hays, said AI lets candidates apply for more jobs and customise their CVs at scale, so far more CVs look very good on paper and employers must do more in-person screening. The nature of roles is also shifting, with employers increasingly looking for demonstrable AI capability. According to LinkedIn, 77 per cent of recruiters say it is harder to find qualified talent than a year ago, up from 68 per cent the year before.

Wong suggests a human touch can still give candidates an edge: relationships can help to getting a foot in the door, starting with people they already know, even something as simple as a message or a coffee. LinkedIn figures show Australian applicants with an inside connection at a company are 4.5 times more likely to be hired. He also cautions against relying too heavily on AI to write CVs and cover letters, because everyone is starting to sound the same.

Experts also suggest looking beyond one's immediate industry. Chapman said there are still opportunities across the labour market, with September growth in retail, consumer products, hospitality and tourism, while mining, resources and energy, engineering and construction recorded some of the strongest annual growth in job ads.

Tjahja said she started applying immediately and had been contacted about just one potential opportunity, which she turned down. The reason her own role ended was specific to her employer; it should not be treated as proof that every redundancy has the same cause. Arnett said she had been applying for a handful of roles each month. ABS jobseeker responses also identified too many applicants for available positions as a main difficulty in the preceding year.

Illustrative empty meeting room, not one of the Australian employers or jobseekers in this report.