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The surprising truth about the Australian labour market
At Engage Sydney 2025, High performance recruitment coach and RNA Podcast host, Ross Clennett, delivered a data-driven, thought-provoking session titled “The Surprising Truth About the Australian Labour Market.” Packed with sharp insights and real-world implications, the session challenged common assumptions about the state of hiring, the role of AI, and the future of recruiters themselves. Clennett pulled no punches—leaving the room with bold insights, pressing questions, and a few laughs along the way. Read on to find out the key takeaways from the insightful session.
Australia’s current job market
While media reporting often paints a turbulent picture of the Australian job market, the data tells a different story—one of resilience and even growth. Labour market indicators such as low unemployment and high job vacancy rates point to underlying strength. And yet, there’s widespread confusion. That’s because we’re living through a uniquely complex period, where headlines and economic data often seem at odds.
The introduction of AI is frequently portrayed as a major disruptive threat, but Clennett pointed to a different kind of disruption—unprecedented job creation. “Over 1,100 net new jobs created daily over the past year,” remarked Clennett.
While today’s environment may differ from the relative stability of pre-COVID years, the post-COVID recovery has brought its own changes. The reopening of borders triggered a surge in job applications in 2023. At the same time, remote work, migration trends, and the rapid rise of generative AI dramatically reshaped the hiring landscape.
The influx of candidates—particularly lower-skilled, migrant workers—has left recruiters under pressure to sort volume from value. It’s a challenge of quality over quantity, more than simple supply and demand.
Despite these shifts, Clennett remains confident:
“The reality of the Australian economy is that we are a job generating machine.”
While AI may replace some roles, the data shows that overall job growth is real—just not always in the sectors that recruiters have traditionally focused on.
The Impact of AI
Touching on one of the most pressing topics of our time, Clennett explored the many ways AI is impacting recruitment. From reshaping the types of roles available to transforming the recruitment process itself, AI is influencing the industry from all sides.
Certain jobs, particularly white-collar roles, are already facing redundancy, as skills once seen as essential are being rapidly superseded by generative AI. On the other hand, roles focused on physical execution remain far less susceptible to automation. Clennett referenced research by Indeed, noting that these jobs are the most AI-resistant. He illustrated this with a personal example of his daughter, a chef at a school, walks 13,000 steps a day to get her job done—a task no algorithm is replacing anytime soon.
For recruiters, this shift means developing a sharper understanding of which roles their clients will need in the near future—and how they can continue to add value in an increasingly tech-led market. “You want to get very clear how susceptible your sector is to disruption, and what that means for the type of jobs you recruit” stated Clennett.
Clennett then went on to describe how tech giants have already started cutting back on white-collar roles, explicitly citing AI as the reason. But Clennett also highlighted the flip side: – companies like Klarna, which championed an AI-first hiring strategy, have seen it fall short, a reminder that not everyone is being replaced just yet.
Still, the threat is real. Microsoft’s investment in LinkedIn’s AI tools signals an ambition to empower employers and bypass traditional recruiters altogether. His message is clear: adapt or risk being replaced.
The shifting value of recruiters in a tech-led market
AI and automation are already thriving in low-skill, high-volume recruitment, especially in sectors like retail and fast food. Brands such as McDonald’s have implemented chatbot-led hiring processes, which appeal to younger, mobile-first candidates who are often more comfortable with non-human interaction.
Even candidate behaviour is shifting. Tools like ChatGPT are helping job seekers polish resumes and apply en masse, making it increasingly difficult for recruiters to spot truly qualified candidates. This change drives up screening costs and demands a new level of precision, tech-savviness, and human intuition from recruiters.
Meanwhile, recruiters are feeling pressure from all sides. On one end, AI threatens to automate parts of the recruitment process; on the other, clients are pushing for faster, cheaper hiring solutions. Platforms like LinkedIn are investing heavily in AI to offer direct-to-client tools that aim to cut out the traditional recruiter entirely.
And yet, this disruption presents opportunity. While some clients continue re-running ineffective ads or neglect job design and salary competitiveness, smart recruiters can stand out by becoming more than order-takers. There is an increasing need for recruiters to step up as strategic advisors—guiding clients on role design, salary benchmarks, selection criteria, and speed-to-hire.
To stay relevant, Clennett recommends that recruiters:
- Know your sector’s AI risk: Understand how susceptible your market is to automation.
- Ask better questions: In interviews, find out how candidates and clients are already using AI.
- Prioritise data integrity: A clean, rich database gives AI the ability to deliver meaningful insights and recommendations.
Ross closed his session with a challenge:
“How will AI impact your business model? Can your value proposition survive automation? Are you evolving fast enough?”
For more insights from Ross Clennett, visit his website.
