How the 2025 Australian Federal Election could impact the job market

Economic conditions and the job market in 2025

Australia’s economy in 2025 is being shaped by both domestic policies and global events. While campaign promises from Labor and the Coalition are drawing attention, international developments – including China’s economic shifts and U.S. policy changes – are expected to have a greater impact on Australia’s short-term economic direction.

The hiring market has remained relatively steady. Sectors like technology, after facing two years of contraction, are beginning to rebound. Minor tax changes and long-term energy strategies proposed by both parties are unlikely to produce rapid shifts, but employers should stay informed about updates that affect workforce planning.

Hybrid work in Australia: Still a top priority

Flexible work arrangements in Australia continue to dominate jobseeker expectations. Our recent data shows that more than half of professionals prefer remote work at least two days per week – highlighting the long-term value of hybrid working models.

Political positions are shifting in response. Both major parties have adjusted their policies, including softened stances on remote work for public sector employees, reflecting broader workplace changes across industries.

“Regardless of which party leads the next government, hybrid work is something that needs to be well thought out,” says Bernadette Bentley, Head of Federal Government at Robert Walters. “Flexibility is no longer a nice-to-have – it’s a dealbreaker for top talent.”

Cost of living and wage expectations in Australia

Australia’s rising cost of living is a key issue in the 2025 election. Voters are weighing two different approaches: one party is offering immediate relief measures, while the other is proposing minimum wage increases aimed at long-term support.

From a recruitment perspective, inflation is already influencing salary expectations. “We’re hearing from jobseekers that expectations are increasing in line with living costs,” Bentley explains. “Employers need to remain competitive while ensuring their workforce strategy is sustainable.”

Energy policy and its impact on jobs

With climate and energy policy in Australia a central election issue, the implications for the job market are significant. One party is supporting nuclear energy and gas expansion as part of a broader plan for energy security, while the other has raised concerns about feasibility and environmental impact.

These debates have real consequences for industries like mining, engineering, and renewables – all of which are navigating talent shortages.

“Energy strategy directly affects these sectors,” Bentley notes. “Clear, long-term planning will be essential to attract investment and support workforce development.”

Healthcare sector and workforce challenges

Healthcare remains a critical focus in the 2025 election. Both parties have outlined plans to improve healthcare services – one through broad system investments (e.g. Medicare, mental health, aged care), the other through more targeted support like mental health subsidies.

As Australia’s healthcare workforce faces increasing demand, employers are contending with recruitment challenges across clinical, aged care, and digital health roles.

“The sector is under pressure,” Bentley says. “Policy direction will play a major role in shaping the future of healthcare staffing.”

What employers and jobseekers should expect after the election

While policies may differ, one thing is clear: the Australian employment market is poised to react swiftly post-election. Employers and professionals are watching closely for policy announcements related to migration, wages, and industry-specific investments.

“We expect to see fast-moving changes after the vote,” says Bentley. “Whether you’re hiring or job-hunting, it’s a good time to stay engaged and prepare for what comes next.”

Final thoughts

Australia’s 2025 Federal Election is likely to bring change – but the country’s job market is already in motion. Whether you’re navigating recruitment trends, reassessing your salary expectations, or planning for hybrid work, staying informed will be key.

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