Hiring managers rethink the right hire amid labour market changes
Australian employers are reshaping how they define the right hire, with adaptability and hybrid capabilities increasingly outweighing traditional measures such as headcount and narrow technical fit, according to PERSOL's Industry Insight Report 2025.
The report, based on findings from 12 markets and four core sectors – manufacturing, consumer, professional services and supply chain – shows that skills shortages, broadening job scopes, and rising expectations on both sides are shifting the labour market.
Kurt Gillam, executive general manager and country head, Australia and New Zealand at PERSOL, said Australia's talent economy is at a "crossroads."
"Workforce gaps are no longer just about headcount. They are about adaptability," Gillam said.
Hiring decisions in Australia are becoming more future-oriented, according to the report. Employers are prioritising leaner teams and long-term cultural alignment as economic pressures, automation, and sustainability reshape operations.
"Employers seek candidates that combine technical proficiency with versatility, reflecting a drive for operational efficiency and cross-functional knowledge," the report stated.
"Similarly, in corporate and professional services, soft skills and adaptability are in high demand."
Changes in the labour market
These steps come as automation, new sustainability regulation, and demographic change are shifting the labour market, according to the report.
Employers are struggling to secure digital, analytical, and hybrid capabilities, with demand outpacing supply in most major markets.
It also found that ESG awareness and compliance literacy are becoming essential hiring criteria as organisations respond to growing sustainability expectations.
The research further highlights a growing disconnect between what employers emphasise and what candidates are seeking.
"While many firms still lead with salary, candidates are increasingly prioritising culture and purpose-aligned employers," it said.
"Employers, particularly mid-sized or traditional firms, are slower to adapt. Candidates in Supply Chain and Logistics are turned off by traditional models of rigid shifts, transactional environments or opaque pay structures, preferring flexibility, purpose and transparency."
The PERSOL report, which also covered the greater Asia-Pacific region, stated that strategic workforce planning is now "more urgent than ever."
"In a volatile environment, where uncertainty is the new constant, understanding labour trends at both a macro and micro level is essential," it read.
