Job Market Shake-Up: Applications Soar While Job Openings Shrink

A Surge in Applications, A Drop in Jobs

The job market across the United Kingdom,  Australia, and New Zealand, is shifting dramatically. According to JobAdder’s 2025 State of the Market Report, job applications have nearly doubled in the past year, yet job creation is shrinking, making competition fiercer than ever.

In Australia, job applications per position rose by 44% since 2023, a 167% jump from 2022. New Zealand saw an even sharper increase, with applications up 49% year-on-year and 261% from 2022. The UK followed, with applications rising 35% from 2023 and 109% from 2022.

Meanwhile, job openings declined—Australia saw a 5.4% drop in 2024, New Zealand plummeted 17%, and the UK declined 3.4%. “This surge highlights a shift; recruitment is now about managing high volumes and identifying quality talent,” said Martin Herbst, CEO of JobAdder.

Recruitment Industry Feels the Pressure

Recruitment agencies are struggling with record-high applications. In Q4 2024, there were 41 applicants per job in Australia, 43 in New Zealand, and 17 in the UK. With fewer jobs available, finding the right candidate has become even more challenging.

However, the UK showed signs of stabilisation, with job openings per agency increasing 6.6% from Q4 2023 to Q4 2024. Australia and New Zealand fared worse, with job openings per agency dropping 5.6% and 14%, respectively.

AI’s Expanding Role in Recruitment

To cope with rising applications, agencies are turning to artificial intelligence (AI). JobAdder’s Recruitment Agency Benchmarking Report states that 81% of agencies plan to expand AI use in 2025, with 72% already leveraging it for administrative tasks (69%) and job ad improvements (58%).

While AI brings benefits—67% of recruiters report time savings and 56% see a return on investment—only 19% feel highly confident in using it effectively. Additionally, 44% express concerns about their teams' ability to adapt.

Business Development Becomes a Priority

With job placements becoming tougher, recruitment firms are focusing on business development. The report reveals 67% of agencies plan investments in this area for 2025. Securing new clients (75%) and strengthening existing relationships (72%) are top priorities.

Yet, only 6% of respondents are fully satisfied with their business development strategies. As competition intensifies, firms must adopt innovative, client-focused approaches to stay ahead.

The Road Ahead

Despite hiring slowdowns, 56% of recruitment agencies remain optimistic. “Technology alone isn’t the solution. Businesses must build expertise and resilience to succeed,” said Herbst.