Career growth, flexibility & upskilling top 2025 work trends

people2people Recruitment has released its 2025 Workplace & Employment Trends report, shedding light on national and generational shifts in employment attitudes, benefits, and retention strategies.

Remi Marcelin, Marketing Specialist at people2people Recruitment, introduced the key findings, stating, "Good morning, everyone. Thank you for joining us. I'm Remi Marcelin from the Marketing team at people2people, a recruitment agency operating across Australia, New Zealand, and the UK. Today, I'm excited to present some of the key findings from our 2025 Market Report.

:This is the first time we're sharing these insights with journalists before the public release of the report, which is something new and exciting for us. Please feel free to ask questions as we go. If any particular topic sparks interest and you'd like to explore it in more depth, we're more than happy to provide interviews or dig into further data on request."

The report indicates the job market has slowed since 2024, with a decrease in job advertisements leading to more competition per role. Although hiring confidence and job seekers' optimism remain generally positive, both have softened in 2025. Marcelin noted, "The job market has been slowing down since 2024. We've seen a drop in job ad volumes, which has led to an increase in applications per role, with more candidates competing for fewer opportunities. While hiring confidence remains relatively strong, it has dipped slightly in 2025. Similarly, job seekers' confidence, although still high, has softened due to a more competitive and uncertain market."

The report shows inflation has eased from the high levels of 2022 and 2023, reflected in a moderation of salary increases. Marcelin explained, "Inflation has steadily decreased since the highs of 2022 and 2023. Correspondingly, the rapid salary increases seen during that inflation spike have slowed down in 2025, as the economy remains somewhat fragile. Despite the slowdown, unemployment rates remain steady, which continues to drive talent shortages in key sectors."

Key hiring challenges for employers include persistent talent shortages and a large volume of irrelevant or overseas applications.

Commenting on staff turnover, Marcelin observed, "The number one reason employees leave a role in 2025 is a lack of career opportunities. While not every employer can meet the salary expectations of their team, especially in today's constrained budget environment, many workers are focusing on career progression as a pathway to future income growth. There's good news, though: training has emerged as the top talent attraction and retention strategy in 2024/2025. This indicates that many employers are aligned with what really drives staff retention."

Salary expectations remain high, fuelled by ongoing cost-of-living pressures, but employers are grappling with budget limitations. Marcelin said, "Salary expectations remain high, driven by the ongoing cost-of-living crisis. However, employers are facing budget constraints in a still-challenging economy. This tension is creating a tough landscape for salary negotiations."

The most-requested workplace benefit for 2025 is flexible working hours, returning to its top position after being second in 2024. Significant mismatches persist between what employees seek and what is available, particularly around opportunities for upskilling in AI and technology, and fair compensation for overtime.

Employee priorities continue to shift. Marcelin stated, "Over the last few years, we've seen shifting priorities among Australian workers. In 2025: Work-life balance is the most important factor for job seekers. Job security has become a rising concern. Career opportunities and training are still highly valued. Management and trust come in fourth—echoing the saying, 'people don't leave jobs; they leave managers.' We also note employers are reprioritising their offerings, aligning more closely with these evolving expectations."

Workplace flexibility remains high on the agenda as companies and their managers seek to find a balance between employee mental health and organisational objectives. Marcelin remarked, "Workplace flexibility remains a major discussion point. Managers are trying to strike a balance between supporting employee mental health and achieving goals around productivity, collaboration, and engagement. Many employees now expect higher compensation if they're required to spend more time back in the office."

The report details generational differences in workplace preferences. Gen Z employees, early in their careers, favour weekly check-ins and prioritise career growth, mental health, and diversity, equity, and inclusion (DEI).

Millennials continue to value training and progression but increasingly see work-life balance and job security as key. Generation X is focused on trust in management and a balanced working life, while Baby Boomers seek meaningful work and flexibility, with minimal oversight.

Marcelin explained, "Gen Z: Early career stage, so they prefer weekly check-ins and priority reviews. Strong focus on career growth, mental health, and DEI (diversity, equity, inclusion).

Millennials: Still value career growth and training, but are now placing more importance on work-life balance, job security, and trust in management. They require less frequent check-ins as they mature in their roles.

Gen X: Increasingly focused on a balanced work life. Manager trust is their top priority. Career development has dropped from their top 5 concerns.

Baby Boomers: Prioritise meaningful work and trust in management. They value flexibility but request minimal oversight (check-ins, reviews, or recognition), indicating well-established self-management. Top managerial traits valued across all generations: Communication and integrity.

The 2025 report highlights a changing landscape in employee and employer expectations, with ongoing adjustments in response to broader economic trends and generational workforce shifts.