Employment Market Trends Quarter 2 24/25
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The 2024 calendar year was defined by cautious economic policies, tighter budgets, and tough decisions. Smaller Northern Beaches businesses, in particular, had to navigate these challenges, while larger companies showed some resilience. The slowdown in wage growth also limited consumer spending, further affecting the economy.
Looking ahead, 2025 offers a more optimistic outlook. The jobs market is recovering, reflecting growing business confidence in Sydney and beyond. While spending is gradually increasing and a potential cash rate cut is expected, the pace of change will remain steady. Despite global uncertainties, Australia’s economy is set to perform better this year, which is positive for Northern Beaches businesses.
Northern Beaches in review:
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Population: 272,413 people
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Growth forecast: 11.31% by 2046 (30.81% for Sydney)
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Gross Regional Product: $21.10 billion (14.9% of Sydney GRP)
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The majority of Northern Beaches residents work locally (74.6%)
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Number of GST-registered businesses: Increased in 2024 by 196 (825 new registrations, 629 cancellations), for a total of 38,143 businesses
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Working age employment rate (82.1%)
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Unemployment rate (2.1%)
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Underemployment rate (5.9%)
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Vacancy fill rate (68.8%)
Sources: .Id, Northern Beaches Council, Population Forecast; .Id, Northern Beaches Council, Economic Profile, .Id, Northern Beaches Council, Community Profile; .Id, City of Sydney population forecast.
Employment trends:
As back-to-office mandates increase, organisations who originally hired for remote or hybrid roles during COVID-19 are experiencing higher turnover rates. Many candidates, especially those initially hired for remote positions, are finding it challenging to adjust to the return-to-office expectations, especially with the rising cost of living. This has resulted in a noticeable trend where candidates are steering clear of employers who are not willing to accommodate the flexible work arrangements they were promised.
For businesses, this creates both a challenge and an opportunity. Candidates are now prioritising companies that are flexible with their work arrangements, and many Northern Beaches job seekers are increasingly looking for roles closer to home, rather than returning to CBD employers that are demanding office presence. This could present a valuable opportunity for local companies to tap into a skilled talent pool that might otherwise have considered roles in the city. Companies that are able to offer hybrid or fully remote roles may find themselves with a competitive edge in attracting top talent.
What Job Seekers Are Saying:
At mme, we have been consistently hearing from candidates that their priority is to "find their crew" - a team they genuinely want to work with.
This focus on team culture is crucial, as 92% of employees report that work friendships make them more likely to stay with their current employer. The importance of this connection cannot be overstated, particularly as businesses adapt to new office mandates that require more time spent on-site.
To improve employee retention, businesses should consider adjusting their hiring processes to involve team members in the interview process. This approach not only helps ensure that new hires are a good fit for the role but also that they align with the existing team culture.
As hybrid and flexible work arrangements continue to evolve, hiring decisions must emphasise cultural and interpersonal compatibility to maintain a motivated, cohesive workforce. The shift towards in-office work makes it even more critical that each hire aligns matches our job, boss and culture methodology to fit in seamlessly.
mme’s local expert opinion:
We have observed that the past 12-months have been a candidate-rich market, where businesses have had a wealth of talent to choose from. However, we are starting to see signs that this dynamic is shifting. As the job market continues to evolve, businesses will soon face a more competitive landscape when it comes to hiring.
For those planning to expand their teams, the time to act is now. Delaying hiring decisions could mean missing out on top candidates as the market begins to tighten. To ensure you're attracting the best talent, it is critical to move quickly and prioritise a recruitment process that aligns with the expectations and values of today’s candidates.
Suzy Howard
Director & Employment Market Expert
mme Group