Recruitment Blog

3 big recruitment trends you need to know about in 2023

Sarah Linney
Content Marketing Manager at JobAdder

Wondering what big recruitment trends will shape how the recruitment sector shifts in 2023? Our latest global industry report reveals the recruitment trends you need to know this year.

From proactive sourcing to job growth, days to place, agency fees and a whole lot more, our global report delves into exclusive JobAdder data to unearth the big market shifts and trends influencing the recruitment industry.

Read on to discover the three recruitment trends that could change your outlook for 2023.

Discover the recruitment trends shaping our industry in 2023.

Recruitment trend 1: Jobs are down but not out

Our report found that the average number of new jobs created per JobAdder account was down across Australia, New Zealand and the UK at the end of 2022. The UK market saw the biggest fall in new jobs, from an average of 63.3 jobs in Q1 2022 to 49.7 jobs in Q4.

However, recruitment expert and JobAdder advisor Greg Savage states that it’s not all doom and gloom. “This slowdown in jobs is being felt by most recruitment companies. It started in white collar roles such as business support, accounting, marketing and legal support. Initially, high-demand areas such as IT were unaffected, but towards the end of 2022 my clients in those sectors reported a meaningful decline. One client was driven to remark “The party is over”. I wouldn’t describe the current situation that way.”

“What has happened is we have gone from an unprecedented boom with jobs pouring in, to a ‘good strong market’. Plenty of people are being hired. It requires a recalibration from agency recruiters who have allowed business development, client nurturing and job selection skills to weaken. Right now, there is no ‘bust’ in job demand. Just a correction. The test will be the first six months of 2023.”

When the Australian Financial Review covered these insights, JobAdder customer and Collar Group’s CEO and Founder, Ephram Stephenson, weighed in on these insights and added that: “Certainly within the white-collar technical and engineering spaces there are fewer jobs being advertised. There are a lot of people applying for fewer jobs and companies need to be a little bit more strategic in how they look after clients and candidates.”

Recruitment trend 2: Applications are up

Our report reveals that the average applications per job rate increased across Australia, New Zealand, the UK, the US and Canada. The biggest jumps were seen in New Zealand

(8.5 applications in Q4 2021 — 13.4 applications in Q4 2022) and Canada (9.6 applications in Q4 2021 — 14.3 applications in Q4 2022).

Greg states that: “The impact of this change on recruiters is actually very nuanced. Job volumes are dropping but they are still healthy, and hiring continues. We are not in a recession (yet). The fact that candidate flow is increasing may also be a mixed blessing. Volume of candidates does not always mean more qualified candidates. Indeed, an impending downturn reduces candidate confidence and inclines many well-qualified people to stay put.” 

“For recruiters, more inappropriate candidates applying makes the recruiting job harder, not easier. So, the onus is on recruiters now to take better-qualified job orders and understand the real level of client commitment, and also to screen much more effectively to find the right candidates in what might become a crowded, but not highly qualified, candidate marketplace.”

Recruitment trend 3: Proactive sourcing is waning

While the use of proactive sourcing still remains well above pre-coronavirus crisis levels (19%), it has steadily declined across 2022, moving from 46% in Q1 to 37% in Q4.  

Greg believes that this is a clear warning sign: “After many quarters of improving proactive sourcing success, recruiters are now taking the focus off this and going back to reactive sourcing. I would encourage more focus on candidates via your database, not less. This report provides compelling evidence that this is faster and cheaper. Identify from JobAdder every candidate you rated as ‘good’ but did not place in 2022 and 2021. Then contact them to reignite that relationship. That could lead to a new candidate or client, but it will definitely positively impact your brand.”

To find out more about applications per job, days to place and agency fees (with a bonus section on what high-performing agencies have in common), download our global recruitment industry report now.

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