If you’re looking for a job in Australia right now, it’s safe to say the competition is fierce. In what’s been dubbed “the great squeeze,” applicants are flooding into an already tight job market, leading to more challenges for both job seekers and recruiters. Here’s what’s happening and why things are getting harder than ever.
The Surge in Applications: More Applicants, Fewer Roles
Since late 2022, job applications per role in Australia have nearly doubled, according to data from LinkedIn shared exclusively with Yahoo Finance. So, what does that mean for someone looking for work? Well, it means that the number of candidates applying for each role is at an all-time high. But despite the flood of applications, the hiring rate has actually dropped by 21% compared to pre-pandemic levels.
This mismatch is creating a real bottleneck for both job seekers and recruiters. While there are more applications pouring in, it’s harder to land a role because competition is fierce. It’s also causing recruiters to rethink their strategies. Wylan Ho, founder of Kindred, a recruitment agency specializing in digital marketing roles, explains to Yahoo Finance that while there’s a high quantity of applicants, the quality hasn’t kept up.
He’s noticing that many applicants are sending in CVs with little to no relevant experience for the positions they’re applying for. It’s a little like casting a wide net but hoping to catch a prize fish — but most of the time, you end up with nothing but seaweed.
AI: The New Recruiter Helper (or Hindrance?)
With applications coming in by the hundreds for each role, many recruiters are turning to artificial intelligence (AI) to help manage the madness. And, let’s be real, it’s no surprise. Companies like Bunnings, Woolworths, and even the NSW Government are relying more and more on AI to help with everything from screening resumes to video interviews.
But while AI is making things more efficient, there’s a catch. In fact, about 44% of Aussie recruiters admitted they could no longer do their job without it. AI is really helping streamline processes, save time, and, as many recruiters argue, even reduce bias. It’s also standardizing interviews, making sure each applicant gets treated the same. But there’s a potential downside: personal touch. It’s easier than ever to get filtered out by an algorithm if your resume doesn’t check all the right boxes.
What Does This Mean for Job Seekers?
For job seekers, this means that standing out is more important than ever. With AI taking over a lot of the initial screening process, it’s crucial to make sure your resume is optimized for these algorithms. Tailoring your CV to match the job description isn’t just a good idea anymore — it’s a necessity. The competition is so stiff now that even small details can make or break your chances.
On top of that, job seekers may have to rethink their entire approach. Experience might be less important than it used to be. In fact, a lot of employers are looking for potential over experience, especially in industries where tech is playing a bigger role. But let’s be honest: it’s also a little overwhelming. With so many people applying for the same role, even if you’re the perfect fit, there’s still the chance you’ll be overlooked.
So, What’s Next for the Job Market?
The real question is, where do we go from here? Will “the great squeeze” end, or is it just the new norm? As long as applications continue to rise and companies keep tightening up on hiring, the situation isn’t likely to change soon. AI may continue to help with the overload, but it also might make job seekers feel even more like a number in the system. It’s an ongoing challenge, but if there’s one thing we know for sure, it’s that the job market will keep evolving, and job seekers will need to stay sharp to keep up with it.
For now, job seekers need to focus on standing out, adapting to the digital landscape, and constantly improving how they present themselves to meet the changing demands of this competitive market.
