Australia must adapt to remain a destination of choice for global talent and investment, says Hays

Published: 01 October, 2025
 
New research released by Hays, the global leader in specialist recruitment and workforce solutions, reveals how Australia’s position in the global talent landscape is being shaped by a range of workforce and labour market factors. The report, which compares labour market performance across 35 countries, highlights both opportunities and risks in attracting, developing, and retaining skilled talent - offering valuable insights for business leaders and policymakers.
 

Key findings for Australia

Australia ranks 10th out of 35 countries in the Hays Global Talent Tracker, with an average score of 57.5.
 

Strengths:

  • High productivity (output per hour: $69.2 USD, above the 35-country average) and economic resilience.
  • World-class migration system and strong governance, with high rankings on the World Bank’s Worldwide Governance Indicators.
  • Above-average performance in talent development and participation, supported by globally respected educational institutions and government investment in training.
  • Fastest growing sectors by 2030: Banking, Finance & Insurance; Technology; Services; Construction; Manufacturing.
  • Hybrid and remote work models are expanding access to regional talent and supporting inclusion, especially for women and older workers.

Challenges:

  • Productivity has stagnated in recent years despite being strong overall.
  • Workforce participation (66.9%) is below the global average (76%), with high childcare costs and early retirement limiting availability, especially among women.
  • Persistent skills mismatches, particularly in healthcare, trades, construction, and technical/engineering roles.
  • Barriers for skilled migrants include cultural disconnects and credential recognition issues, leading to underleveraged talent.

Talent attraction and retention:

  • Australia’s skilled migration programme is among the world’s most comprehensive, with India now challenging the UK as the top source of talent.
  • Net migration rate: 5.9 per 1,000 people (well above the global average).
  • Integration, not just attraction, is key to long-term success.

Dirk Hahn, Chief Executive Officer of Hays:

“Hays’ findings show how the global landscape for talent is evolving at unprecedented speed, with countries investing strategically to build more innovative, resilient and future-ready workforces amid increasing economic uncertainty. As organisations navigate this complexity, the ability to identify and harness the right talent ecosystems will become a defining factor for long-term success. The findings reinforce there are many contributing factors to a strong workforce, and each market can and should consider that combination differently, but by understanding these trends, businesses can make smarter decisions about where to invest, grow and compete on the world stage.”
 

Headwinds to future Australian growth

Hays’ research highlights a range of factors shaping the future of Australia’s labour market. While there are clear strengths, the data also points to areas where targeted action is needed to remain competitive in attracting global talent and investment.
 
  • Workforce productivity and adaptability: Productivity is strong but has stagnated; there’s a national drive to get more out of the existing workforce.
     
  • Return on workforce investment: Australia’s investment in education and training is robust, with notable public-private partnerships (e.g., $100 million invested by Robin Khuda into the University of Sydney for STEM talent).
     
  • Economic and hiring conditions: Employers face challenges from wage inflation, regulatory changes, and economic uncertainty.
     
  • Talent mobility: Skilled migration is high, but integration barriers persist. Hybrid work is unlocking regional opportunities, with significant migration into Queensland, the Gold Coast, and Brisbane.
     
  • Policy and regulation: Recent reforms (e.g., Fair Work Amendment Act 2023) have strengthened worker protections and introduced criminal penalties for wage underpayment. Visa incentives support regional placements, but mindset change is needed to fully leverage non-metro talent.
“Australia’s foundations are strong, but sustaining competitiveness will require decisive action,” said Shane Little, Managing Director at Hays. “Investing in skills, creating pathways that promote diversity in the workplace, and deepening collaboration between government and industry are critical to strengthening productivity and ensuring Australia remains a destination of choice for global talent.”
 
The findings underscore the need for coordinated action across government, business, and education to ensure Australia remains a destination of choice for global talent and investment. Hays’ data-driven insights offer a unique lens into the complex factors shaping labour market development and can help guide strategic decision-making.

About Hays

Hays plc (the "Group") is the world’s leading specialist in recruitment and workforce solutions, such as Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP). The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 31 December 2024, the Group employed over 10,300 staff operating from 225 offices in 33 countries.


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