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Australia’s HR Sector: Employment Trends and Future Outlook

By Vikrant Singh, March 15 2025


The Australian job market continues to see a steady demand for Human Resource (HR) professionals and managers, with new insights provided by Jobs and Skills Australia highlighting key trends, skill demands, and future projections for the industry.

Employment Trends in Human Resource Management

The HR sector has experienced consistent growth over the past five years. The following table presents employment trends for Human Resource Managers:

Year

Employment Level (in thousands)

2018

51.2

2019

53.0

2020

54.5

2021

55.8

2022

57.6

Meanwhile, Human Resource Professionals have also seen steady employment growth:

Year

Employment Level (in thousands)

2018

73.5

2019

75.9

2020

78.2

2021

80.1

2022

83.0

The consistent upward trend in employment levels indicates strong demand for HR professionals across industries.

Future Employment Projections

Employment in HR roles is expected to continue growing, with projections estimating further increases by 2027:

Year

Projected Employment Level (in thousands) (HR Managers)

Projected Employment Level (in thousands) (HR Professionals)

2023

58.5

85.2

2024

60.0

87.4

2025

61.7

89.8

2026

63.2

92.0

2027

65.0

94.5

This projected growth is driven by increasing workforce demands, evolving workplace policies, and the rising importance of HR in business strategy and operations.

Skills in Demand for HR Professionals

According to the latest report, the following key skills are crucial for HR professionals and managers:

  • Workforce Planning & Talent Acquisition – Managing hiring processes and talent pipelines.

  • Employee Relations & Conflict Resolution – Ensuring fair workplace practices and resolving disputes.

  • HR Information Systems (HRIS) Management – Utilizing software for HR functions.

  • Change Management & Organizational Development – Leading transformation initiatives within companies.

  • Compliance & Employment Law – Understanding legal requirements and best practices.

Challenges and Opportunities in the HR Sector

Challenges:

  • Technology Adaptation: The shift towards AI-driven HR tools requires continuous learning.

  • Diversity & Inclusion: Organizations are increasingly prioritizing inclusive hiring, requiring HR professionals to develop expertise in this area.

  • Talent Retention: With evolving work preferences, HR teams must implement better engagement and retention strategies.

Opportunities:

  • Remote Work Growth: Companies expanding remote work policies require HR leadership to develop new frameworks for virtual teams.

  • HR Analytics: The rise of data-driven decision-making allows HR teams to optimize recruitment, engagement, and productivity.

  • Upskilling Initiatives: Government-supported training programs are helping HR professionals stay ahead of industry trends.

Conclusion

The demand for HR professionals and managers in Australia remains strong, with promising future growth. As businesses focus more on workforce development, organizational efficiency, and digital transformation, HR professionals will play a critical role in shaping the future of work.


 


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