'Recruiters are no longer struggling to find candidates – they're inundated with them'
Recruitment agencies in Australia and New Zealand are "inundated" with a significant increase in job applications amidst a downturn in job openings, according to a new report.
JobAdder's Q1-Q2 2024 State of Market Report revealed that the average number of job applications per position at recruitment agencies in Australia saw a 41% year-on-year increase and a 165% rise since 2022.
Job applications per position surged from 26.8 in the second quarter of 2023 to 32.3 in the fourth quarter of 2023, before further escalating to 41 in the first quarter of 2024, and then settling at 37.8 in the second quarter of 2024.
New Zealand mirrors this trend, with applications per job rising sharply from 27.3 in Q2 2023 to 43.9 in Q2 2024, reflecting a 61% annual increase.
Source: JobAdder's State of Market Report
"Recruiters are no longer struggling to find candidates – they're inundated with them," said Martin Herbst, CEO of JobAdder, in a statement.
The findings reflect recent data from SEEK, which has also been reporting a trend of increasing job applications amid fluctuating job ad numbers.
"The real challenge now is filtering through the high volume of applications to identify the most skilled and qualified candidates," Herbst said. "This task has become even more daunting as recruitment teams have shrunk, and the pressure to streamline workflows has intensified."
Declining job openings
The trend in surging job ads also comes as the number of new job openings has begun to decline in both countries.
In Australia, the number of jobs per account fell from 61.9 in Q2 2023 to 58.9 in Q2 2024.
New Zealand reported an even more pronounced drop, with jobs per account decreasing from 56.5 to 44.5 during the same timeframe.
Source: JobAdder's State of Market Report
Permanent job opportunities also saw a decline as temporary and contract placements expand within recruitment agencies in response to broader economic uncertainties, according to JobAdder.
In Australia, temporary roles accounted for 79.4% of agency placements in Q2 2024, up from 76.4% in Q2 2023.
Similarly, New Zealand saw temporary positions comprise 87.2% of placements in Q2 2024, compared to 86.4% in the same quarter last year.
"As businesses cut back on permanent hires and bring recruitment in-house, agencies risk losing ground. To stay competitive, they should consider diversifying their offerings, and expanding into temp placements can be a strategic move to drive growth and revenue," Herbst said.
