A conversation with Sally Mlikota, CBC Staff Selection and Pete Faulkner, Conus Consulting

Low unemployment is usually celebrated, but the flip side is a bottleneck for businesses.
When there are more jobs than workers, growth can stall, teams become stretched and
customer service falters.

While strong employment figures make headlines, the reality on the ground is much more
complex. Businesses are caught between celebrating strong demand and wrestling with the
challenges of unfilled vacancies. For employees, it appears that the world is their oyster, but
uncertainty combined with logistical challenges often means ‘staying put’ is the favoured
option.

CBC Staff Selection’s Sally Mlikota and Conus Consulting’s Pete Faulkner share their
insights into what’s going on in the economy and the local jobs market to help businesses
navigate this strange new normal.

Changing psychology
At the beginning of 2025, Australia boasted 330,000 unfilled vacancies, and currently,
unemployment sits at a healthy 4.2%. With participation rates near record highs, you’d be
forgiven for thinking that it’s a candidate’s market. But the real story is more nuanced.
“In theory, it’s harder to recruit, but the real story is how adaptable businesses can be,” says
Sally. “Some are moving quickly, being flexible with what they are looking for or offering,
while others hold firm, and sadly, miss out.

“Candidates who are actively seeking a new opportunity are not taking weeks to wait for an
interview. They are finding roles really fast. So, those responsible for hiring in your business
need to be able to move just as quickly; otherwise, you risk losing the real talent you need.”
Pete adds, “Those who are already employed are also far more apprehensive about moving.
Data shows that in a post-COVID era, people are valuing security, flexibility, and working
from home.

“Overall labour mobility has decreased, but even those who seek a career or sea change
find it very difficult to find somewhere to live, shrinking the candidate pool further.”

Unlocking a pipeline of skilled workers
With participation at a record high, much of the low-hanging fruit to address labour shortages
has already been realised. But, options remain for employers willing to think differently.
Sally explains, “There is a growing calibre of professional white-collar workers choosing to
spend time in Cairns during their gap year. Gone are the days when Working Holiday
Makers were mainly undergraduates; according to the ABS in 2021, the median age was 27
years old. Equipped with valuable experience and education, they are ideal candidates for
short-term temporary placements.

“We’ve also had tremendous success placing over-60s into roles, particularly those who
have kept their skills up to date. The key for employers is to understand what this cohort is
looking for, and in return, they will benefit from decades of experience.”

Pete highlights the importance of long-term planning, “We have an excellent training
infrastructure with JCU, CQU and TAFE, yet businesses struggle to attract young talent.
With that in mind, there is an opportunity for some industries to target students in their final
year of study to make them aware of the local opportunities before they head south.”

On skilled migration, Pete adds, “Australia’s one-size-fits-all approach means most skilled
migrants are ending up in major cities, while the regions are still screaming out for them.
While the DAMA helps, there is scope for the Government to focus more on regional
challenges, which will ease the burden on major cities and help attract skilled workers to the
regions.”

AI: friend or foe?
The rise of AI has sparked fears that machines will replace people. However, the reality is
more nuanced, with the technology working to create demand for skilled workers while
automating repetitive work.

“In the short term, we don’t see AI reducing the need for workers, so it’s not going to solve
our shortage issues immediately,” says Pete. “In the next five to ten years, we will see some
lower-skilled jobs that can easily be automated.

“But the bigger story is augmentation. AI tools will support skilled workers to become far
more productive. For example, if a software developer becomes ten times faster, the
business won’t stop hiring; it will actually scale up output. The net result will be more jobs,
not fewer.”

Sally agrees, “AI isn’t solving the shortage right now. However, it does mean that employers
should think differently about the skills their team needs. Digital literacy, adaptability and the
ability to use AI as a tool are likely to be baseline requirements in the not-so-distant future.”

The lesser of two evils
Labour shortage and productivity challenges are not unique to Far North Queensland and
while headline figures of 330,000 unfilled vacancies make headlines, they don’t tell the
whole story.

Over the last five years, Australia has added more than two million jobs, with the majority in
the private sector and a significant share in health, education and social assistance. As our
population, expectations, and standards rise, these sectors have expanded accordingly.
For businesses in the Far North, the tight labour market is likely to stay, which should be bad
news. A growing population and expanding service sectors bring opportunities as much as
they do strain. The real challenge, and opportunity, is how employers respond.