Australia hiring gap leaves roles unfilled, revenue hit

Employment Hero has released research showing that 78% of Australian businesses are losing revenue because roles remain unfilled. The study also found that 67% of workers would consider a new role, but only 6% are actively applying.

The figures point to a gap between employers struggling to hire and workers who are open to changing jobs but are not engaging with standard recruitment channels.

The survey found that 55% of employees stayed in their current job over the past year because looking for a new one felt too difficult, time-consuming or uncertain. Another 52% said suitable jobs were effectively hidden because vacancies were hard to find or never reached them.

That pattern appears to be driving business costs. Employment Hero found that 48% of employers believe the talent they need exists in the market, but candidates are not applying through traditional job boards.

Among businesses reporting hiring challenges, vacant roles remain open for an average of 5.8 months. Long-running vacancies increase workloads for existing staff, reduce customer service levels and delay expansion plans, according to the company.

More than three-quarters of employers surveyed said unfilled jobs had already affected revenue. Some 16% reported losses of AUD $250,000 or more over the past year.

Employment Hero estimated the average annual revenue loss linked to unfilled roles at about AUD $160,000 per business, based on midpoint values assigned to survey response ranges. On that basis, the impact would amount to roughly AUD $160 million for every 1,000 businesses.

The findings were drawn from a survey of 1,693 Australian workers and 548 business decision-makers. The worker sample excluded sole traders and self-employed people, while the employer group included business owners and employers.

Hiring gap

David Holland, Managing Director, Talent, at Employment Hero, said the data reflected a mismatch between how employers recruit and how many workers now approach career moves.

"For decades, recruitment has relied on candidates proactively spending their spare time searching for jobs, tailoring resumes and navigating lengthy application processes," Holland said.

"Today's workforce behaves differently. Millions of workers are open to a better opportunity if it lands in front of them, but the sheer friction of traditional job hunting keeps them on the fence.

"We have employers desperately searching for staff and millions of Australians open to moving, but because the two sides aren't connecting, both businesses and workers are missing out," he said.

The company has framed the disconnect as a "Lost Jobs Economy", describing it as a labour market problem in which available jobs and available workers fail to meet because of the structure of the recruitment process rather than a simple shortage of labour.

That view is supported by the relatively low share of workers actively seeking a role, despite a much larger share saying they would consider changing jobs if a suitable opportunity matched their skills and salary expectations.

New product

Alongside the research, Employment Hero has launched Recruitment Agent, a hiring tool intended to identify and match employers with candidates who may not be actively searching.

The system uses the company's own data and intelligence tools to connect businesses directly with qualified candidates and automate parts of the matching and screening process.

Holland said prolonged vacancies had consequences beyond recruitment teams.

"When vacant roles sit open for months, it ceases to be just a hiring problem; it becomes a broader national productivity problem," he said.

"It means existing staff burn out carrying extra work, growth plans get put on hold and local businesses lose real revenue.

"We need to make connecting employers and workers far easier. The future of recruitment relies on taking the effort out of the process, matching passive talent with open roles seamlessly so businesses can fill vacancies faster and workers can discover their next move without the hassle," Holland said.

The research adds to broader debate over labour market efficiency in Australia, especially as employers in some sectors continue to report difficulties filling roles despite a large pool of people saying they are open to changing jobs. The survey suggests employer demand and worker interest may exist at the same time, but that application processes and job discovery remain barriers to hiring.

Among the most notable findings is the extent to which workers described the search process itself as a deterrent. More than half said they remained where they were because moving felt too hard, while just over half believed relevant vacancies were not reaching them at all.

For businesses, the commercial effect appears significant in the survey results, with vacancies lasting for months and revenue losses reported across a large majority of respondents. Employment Hero's estimate put the average annual loss from unfilled roles at about AUD $160,000 per business.