Hiring intentions down as recruitment challenges hit Aussie firms

The number of Australian employers seeking to hire staff in the June quarter went down as recruitment challenges continue to plague organisations.

This is according to the latest Quarterly Work Outlook Report from the Australian HR Institute, which surveyed 607 senior professionals and decision makers across the country.

It found that 68% of organisations plan to hire staff in the June quarter, down slightly from the 71% in the previous quarter.

^{Source: Australian HR Institute's Quarterly Work Outlook report}

These findings come as 40% of employers reported recruitment difficulties, slightly up from the 38% in the previous quarter, according to the report.

To address these challenges, majority of employers said they are upskilling existing staff (30%) to retain them, while nearly a quarter said they are raising wages and/or improving benefits (23%).

^{Source: Australian HR Institute's Quarterly Work Outlook report}

Wages outlook

According to the report, Australian employers are expecting a three per cent mean basic pay increase, excluding bonuses, in the 12 months to April 2025.

This is slightly lower than the 3.7% previously expected in the 12 months to January 2025, according to the report, but higher than the previously expected to October 2024.

On the other hand, 17% of employers said they are planning to implement a pay freeze, while 27% said they do not yet know the extent of wage changes in their organisation for the 12 months to April 2025.

^{Source: Australian HR Institute's Quarterly Work Outlook report}