Job Market in Australia 2025: Redundancies, Restructures & Recovery Paths

The job market in Australia is facing a significant upheaval, as more than one in four employers expect to make work redundancies in the September quarter. This alarming trend represents the second highest level of redundancy intention ever recorded, according to survey data from more than 600 senior business decision makers. Additionally, major financial institutions are leading the cuts, with ANZ alone expecting to eliminate approximately 3,500 jobs and impact 1,000 contractors over the next 12 months.

Despite these concerning developments in the Australian job landscape, the outlook isn’t entirely negative for the job market in Australia 2025. Despite the fact that pay increase expectations have decreased to 2.9% from 3.3% in the previous quarter, a startling 69% of firms still want to hire within the next three months. Furthermore, the overall employee turnover remains steady at 15 per cent for the 12 months until June 30, indicating that while restructuring is occurring, many sectors continue to seek talent, particularly in skilled trades, which employers report having the most difficulty filling.

Employers Announce 5000 Job Cuts Across Australia

ANZ Bank has announced its intention to cut approximately 3,500 jobs by September 2026, with an additional 1,000 contractors also affected as part of a major restructuring plan. This represents just one part of the wider job cuts currently sweeping across Australia’s employment landscape.

Redundancy Intentions Hit Near-Record High

Redundancy plans have surged to concerning levels across the Australian economy. Currently, 27% of employers expect to make workers redundant in the September 2025 quarter, matching the second-highest level for redundancy intentions ever recorded in AHRI’s Quarterly Work Outlook survey. This trend is not evenly distributed across sectors, with public sector organisations (39%) showing significantly higher redundancy intentions than their private sector counterparts (25%). The distribution and production sectors face the most severe outlook, with 35% of employers in these industries planning workforce reductions.

Australian HR Institute Finds 1 in 4 Firms Cutting Jobs

Beyond ANZ, other major organisations are implementing similar measures. Bank of Queensland has been accused of abandoning Australian workers with plans to cut as many as 200 jobs, many of which will reportedly be moved offshore. Simultaneously, EY Australia has announced workforce reductions affecting approximately 1% of its staff, primarily in its technology consulting division. Notably, all “Big Four” accounting firms implemented significant layoffs across various regions in 2024, reflecting a strategic response to shifting market conditions.

Skilled Trades Are Most Challenging Roles to Fill

Paradoxically, even as redundancies increase, many employers continue to struggle with recruitment difficulties. Approximately 33% of organisations report challenges in filling vacancies. Among these:

• Skilled tradespeople positions are most difficult to fill (33% of employers reporting this challenge)
• Professional and associate professional roles (29%)
• Senior leadership or executive positions (24%)

This dichotomy is further highlighted by data from Ai Group’s Centre for Education and Training, which found 77% of businesses surveyed reported an increased need for technical and trade skills, yet 79% were having difficulty finding or training staff to meet this demand. Since 2020, this skills shortage has worsened considerably, hampering business growth and innovation.

Economic Pressures Reshape Job Market in Australia 2025

Economic pressures continue to reshape the Australian employment landscape as companies implement strategic adjustments to remain competitive. A wave of restructuring initiatives has transformed the job market in Australia in 2025, creating challenges and opportunities for workers and employers alike.

Cost-Cutting and Restructuring Drive Redundancies

Rising financial pressures have prompted 70% of Australian businesses to implement cost-cutting measures due to market uncertainty. For many organisations, this includes consolidating technology stacks (59%) and leveraging artificial intelligence to automate business processes (60%). Major institutions like ANZ have cited the need to reduce “duplication and internal complexity” as justification for workforce reductions. Economic conditions significantly influence employment rates, with financial pressures often causing turnover rates to increase as businesses let staff go. Consequently, some organisations are considering more extreme measures, with 45% planning to reduce salaries and 41% contemplating layoffs.

Workforce Skills vs Employer Needs

A critical issue affecting the job market in Australia 2025 is the growing disconnect between available skills and employer requirements. Currently, more than 620,000 permanent migrants in Australia are working below their skill level. This skills mismatch costs the economy approximately AUD 13.76 billion annually. The problem is particularly acute in specific sectors:

• Two-thirds of Australian-born engineers work directly in engineering roles, compared to only half of overseas-born engineers
• 47% of migrant engineers actively seeking engineering jobs remain unemployed
• High and middle-skilled workers often compete for lower-skilled positions, crowding out lower-skilled job seekers

Voluntary and Involuntary Turnover Remains at 15%

Throughout these economic adjustments, the national average job tenure remains at 3.3 years, with voluntary turnover holding steady at about 15% per annum. Interestingly, voluntary job moves outnumber involuntary separations (such as redundancies) by more than two to one. The multiple-job holding rate has increased to 6.6%, with secondary jobs growing at 4.1% compared to main jobs at just 1.5%. This trend likely reflects workers’ responses to cost-of-living pressures, driving more individuals to re-enter the job market or seek additional work. Essentially, although Australia’s unemployment rate remains historically low at around 4%, it is expected to rise modestly to 4.2% by the end of 2025.

Related Article: The Ultimate Guide to the Highest Paying Jobs in Australia

Wage Growth Slows Amid Mixed Hiring Outlook

Wage data reveals a gradual deceleration in national wage growth, creating a complex landscape for both job seekers and employers in 2025. The job market in Australia continues to send mixed signals as redundancy announcements coincide with ongoing recruitment activities.

Expected Pay Rises Fall to 2.9% From 3.3%

Recent reports indicate expectations for pay increases in the coming year have declined to 2.9%, dropping from 3.3% in the previous quarter. This downward trend is reflected in official figures, with the Wage Price Index showing annual growth of 3.4% in the June quarter 2025, unchanged from March but substantially lower than the 4.1% recorded during the same period last year. Moreover, quarterly wage growth slowed to 0.8% in June 2025, below the 0.9% increase observed in March. The Reserve Bank projects this trajectory will continue, with wage growth expected to ease further to 3.0% by mid-2026.

Only 14% of Employers Plan Pay Freezes

Nevertheless, the outlook isn’t entirely restrictive, as merely 14% of employers have indicated plans to implement pay freezes in the upcoming quarter. The share of jobs recording annual wage increases exceeding 4% has progressively decreased since June 2024. Interestingly, the private sector saw 12% of positions recording wage adjustments, slightly above the 11% figure from June 2024.

69% of Businesses Plan to Recruit

Surprisingly, amid widespread redundancy announcements, 69% of organisations intend to conduct recruitment activities over the next three months. Currently, employer confidence in securing suitable talent stands at 63%, representing a 4% year-on-year decline. Investment in recruitment strategies remains robust, with 61% of talent acquisition professionals expecting to increase their spending and another 29% planning to maintain current levels.

Upskilling is Key to Job Security

As job market uncertainty grows across Australia, upskilling has become crucial for maintaining employment security. Studies show that a remarkable 96% of professionals consider upskilling “important” or “very important,” with 84% refusing to consider roles lacking skills development opportunities.

Free and Low-Cost Training Options Available

The Australian government offers numerous subsidised training pathways for workers seeking to enhance their employability. In NSW, Smart and Skilled provides government-subsidised training in quality courses, including fee-free apprenticeships and traineeships. Similarly, Victoria’s Free TAFE programme covers over 80 tuition-free courses in high-demand industries like health, construction, and cyber security. Queensland has also introduced funded training programmes aligned with career stages—Career Start for job seekers and Career Boost for workers.

Employers and Job Seekers Share Responsibility

Research indicates that businesses gain approximately 1% productivity increase for each hour of informal learning provided to employees. Conversely, replacing staff costs roughly 2.5 times a worker’s annual salary. Indeed, 77% of employers surveyed are more likely to shortlist candidates who regularly upskill. Yet only 35% of workers report awareness of the latest technology trends relevant to their industry, highlighting the need for shared responsibility in professional development.

Expert advice: Be Proactive and Open to Change

Experts recommend establishing yourself as a specialist in your field, as people often seek experts when facing workplace challenges. Firstly, take relevant certifications to enhance career prospects. Then, attend industry events and workshops to stay informed. Throughout your career, maintain flexibility—identify transferable skills and consider cross-training in complementary fields. Ultimately, the most successful professionals will possess growth mindsets, viewing careers through the lens of personal fulfilment rather than job titles.

Conclusion – Job Market in Australia

The Australian job market faces a significant transformation as 2025 unfolds. Economic pressures have undoubtedly forced many organisations to implement redundancy plans, with ANZ’s announcement of 3,500 job cuts standing as the most prominent example. Nevertheless, this restructuring occurs alongside persistent recruitment activity, creating a paradoxical employment landscape.

The current economic climate certainly demands adaptation from both employers and employees. Upskilling emerges as perhaps the most effective strategy for job security, with an overwhelming 96% of professionals rating skills development as essential. Free and subsidised training programmes across different states provide accessible pathways for workers seeking to enhance their employability.

The job market Australia faces in 2025 thus presents both challenges and opportunities. Though redundancies signal organisational restructuring, they simultaneously reflect evolving business needs rather than economic collapse. Job seekers who develop in-demand skills, particularly in trades and technical fields, will therefore find themselves well-positioned to navigate this changing landscape successfully.