Why Australian Workers Are 'Job Hugging' in Today's Brutal Job Market

The Rise of 'Job Hugging' in Australia

When browsing job opportunities on LinkedIn, there's one detail that makes Salli Jokinen immediately move on - seeing over a hundred applicants for a single position. "I just don't bother because it's no use," she admits, reflecting a growing trend among Australian workers who are increasingly holding onto their current positions rather than risking unemployment in what many describe as the most challenging job market in years.

Salli Jokinen says the job market has been incredibly competitive since she was made redundant earlier this year. (Source: AAP/Supplied)

A Personal Struggle in a Competitive Landscape

Salli was made redundant in March from her Melbourne digital marketing role where she had worked for more than two and a half years. Since then, she's applied for approximately "a hundred" jobs without securing a full-time position. "I think they were just trying to consolidate a few roles, and unfortunately that meant my role was made redundant," she explained to Yahoo Finance.

Despite having 15 years of experience in digital marketing and applying for roles at various seniority levels, Salli has faced relentless competition. "I've had a few interviews, but unfortunately there's always been someone else who's been better suited for the role," she noted, adding that she's even observed lower advertised wages than a decade ago.

The Numbers Tell the Story

The unemployment rate recently rose to 4.5 percent, surprising economic forecasters including the RBA. Research by accounting software company Reckon confirms that the growing number of applicants per job listing is the biggest factor cited by rejected job seekers.

The unemployment rate is trending up, towards pre-Covid levels. (Source: ABS)

Realistic Careers founder Tammie Ballis has witnessed extreme examples of this competition firsthand, with medical receptionist jobs receiving 400 applicants and certain tech roles attracting up to 800 applicants.

Who's Feeling the Pressure Most?

Reckon's 'Zoomers versus Boomers' research reveals that the stress is hitting hardest among youngest workers due to fewer roles requiring less experience, and older Australians who face potential age discrimination.

For now, Salli is surviving by "doing a bit of freelance work on the side" while continuing her search for stable employment, representing countless Australians navigating what many are calling Australia's toughest job market in recent memory.