Gartner HR Survey Reveals Australian Job Market Confidence Has Hit a Three-Year Low
“With fewer opportunities and heightened competition for open roles, Australian employees are becoming more cautious about making career moves,” said Neal Woolrich, Director, Advisory in the Gartner HR practice. “This lack of confidence is creating a labor market ‘freeze’, where many workers feel stuck – hesitant to leave but also uncertain about what the market can offer.”
AI Intensifies Uncertainty in a Tightening Job Market
The changing nature of work is also contributing to employee unease. As organizations adopt AI at scale to automate tasks, redesign workflows and reconfigure roles, employees face growing ambiguity around future skill needs.
“As AI adoption accelerates across industries, organizations are rethinking the roles and skills they need,” said Woolrich. “For employees, this shift can heighten uncertainty – they’re not just competing with other job seekers, but with rapidly evolving technology. This amplifies the sense of volatility in the job market and can contribute to a decline in job seeking activity.”
Low Job Confidence Holding Employees in Place
The weakened job market sentiment is already influencing job search behavior. The Gartner survey found only 19.4% of Australian employees reported actively seeking new roles in Q4 2025, signalling an overall cooling in job movement.
With measures of job confidence remaining subdued in Q4 2025, the Gartner survey highlighted that employees are looking for stability. The intent of Australian employees to stay in the current role increased to 38.1% in Q4 2025, up from a three‑year low of 32.9% in Q1 2025.
“Employees are opting for security over risk,” said Woolrich. “When confidence in job availability falls, they become less likely to explore new roles – even if they’re dissatisfied. This dynamic can intensify workplace fatigue, tension and disengagement if not addressed.”
Focus on Compensation Intensifies
The Gartner survey revealed compensation remained firmly among the top drivers of both attraction and attrition for employees in Q4 2025, reflecting ongoing cost‑of‑living pressures in Australia (see Table 1).
Table 1: Top 10 Drivers of Employee Attraction and Attrition, Australia, Q4 2025
| Drivers of Attraction (change in rank) |
Drivers of Attrition (change in rank) |
| Location (nil) | Compensation (nil) |
| Compensation (+1) | Manager quality (nil) |
| Work-life balance (-1) | Work-life balance (+2) |
| Respect (nil) | Respect (nil) |
| Vacation (nil) | People management (-2) |
| Manager quality (nil) | Future career opportunity (+1) |
| Stability (+1) | Location (+1) |
| Future career opportunity (+3) | Coworker quality (-2) |
| Job interest alignment (+1) | Recognition (nil) |
| Co-worker quality (-3) | Development opportunity (+2) |
Source: Gartner Global Talent Monitor Survey, Q4 2025
The survey also indicated that poor manager quality remains a top reason Australian employees are leaving their organizations. This highlights the role that leaders play in clearly communicating organizational direction and stability during times of sustained uncertainty.
“In periods of volatility, employees look to leaders for clarity, consistency and fairness,” said Woolrich. “Purpose‑led leadership becomes essential – not only to retain talent, but to create confidence that the organization can navigate uncertainty.”
