Australia’s unemployment rate has climbed to a four-year high, highlighting a labour market under pressure and revealing the challenges job seekers face in securing employment. Recent research by accounting software company Reckon, based on the latest ABS data, provides insight into these hurdles, showing how competition, experience gaps, structural barriers, and age-related factors are shaping the workforce in 2025.
Top Employment Challenges Across Australia
Reckon’s analysis identifies the ten most common difficulties Australians encounter when looking for work:
1. Too many applicants for available jobs – 15.0%
2. Insufficient work experience – 11.4%
3. Own ill health or disability – 10.0%
4. No jobs with suitable hours – 9.4%
5. No vacancies in line of work – 9.4%
6. Other difficulties – 8.2%
7. Lacked necessary skills or education – 6.5%
8. No feedback from employers – 6.5%
9. Too far to travel or transport problems – 5.2%
10. Other family considerations – 4.4%
Around one in seven Australians reports that competition for roles is their biggest barrier. Lack of work experience remains a major issue, particularly for young people entering the workforce. Health problems, unsuitable hours, and limited vacancies further complicate the job search, while factors such as transport difficulties, insufficient skills, or family responsibilities also play a role. These findings reveal a market where access and opportunity gaps are significant, even for motivated, qualified Australians.
Age Matters in Workforce Challenges
Employment difficulties vary significantly by age. For younger Australians aged 15–24, the primary hurdles are insufficient work experience (20%) and competition for roles (13.4%), reflecting the challenges of entering the workforce. Those aged 25–34 continue to face competition (18.8%) and experience gaps (12.3%).
For mid-career workers aged 35–44, limited vacancies (11.3%) and family considerations (8.4%) influence employment options. Among those aged 45–54, lack of vacancies (14.6%) and age-related concerns (6.5%) emerge as key obstacles. Older Australians face more structural
barriers: 55–64-year-olds report age bias (20.8%) and health issues (19.8%) as the primary challenges, while for those aged 65+, age discrimination (43.9%) and ill health (26.7%) make workforce participation particularly difficult.
These trends show that while younger Australians struggle to break into the workforce, older workers are often sidelined despite significant experience and capability. Addressing these disparities is crucial not only for social equity but also for ensuring that Australia’s labour market remains productive and resilient.
Creating Opportunities Across Generations
Alex Alexandrou, General Manager at Reckon, highlights the role businesses can play in addressing these challenges:
“There is a huge opportunity for employers to create genuine entry points into the workforce. Structured internships, apprenticeships, and skills-based hiring practices can help young Australians start their careers. For older workers, tackling age bias and providing flexible, supportive pathways allows experience to be fully leveraged. Supporting both early and late careers strengthens the workforce and ensures that talent is not overlooked at any stage of life.”
Reckon’s findings provide important guidance for businesses, policymakers, and workforce planners. By understanding the specific barriers faced by different age groups and segments of the population, organisations can implement strategies that reduce inequities, improve participation, and maximise productivity.
As Australia navigates a competitive and evolving job market, these insights offer a roadmap for creating a workforce that is inclusive, skilled, and capable of meeting the demands of a changing economy.
The full research is available here.
