Tech job seekers are more likely to be overqualified than applicants in any other sector – and that’s not necessarily good news for employers, new research shows.

Australia’s labour market has softened in recent months, driving a surge in job applications. With unemployment at 4.1 per cent, applications per Seek job ad have risen by nearly 18 per cent year-on-year.

Yet employers say a growing skills mismatch is complicating hiring.

Many candidates are applying for roles below their experience level, while others lack the specific capabilities companies need.

Recruiter Robert Half found more than nine in 10 Australian companies are struggling to identify top talent in what remains a highly competitive hiring market.

More than 80 per cent of hiring managers said they had seen an increase in overqualified applicants over the past year.

Overqualified tech hopefuls

In technology, nearly 90 per cent of respondents reported a rise in overqualified candidates – the highest of any industry.

Robert Half director Nicole Gorton said this trend presents risks for employers.

“There’s been a noticeable increase in candidates applying for roles below their experience level, particularly in technology and finance,” Gorton said.

“ But overqualification is not necessarily a win.

“An overqualified candidate may bring experience, but if the role underutilises their skills, both engagement and retention can suffer.”

The study identified three main hiring challenges: the sheer volume of applications, the rise of AI-generated CVs and a lack of role-specific skills.

“Hiring managers are navigating higher volumes of applications and many are struggling to distinguish the best person for their open role,” Gorton said.

“Uniform formatting, templated language and AI-generated content often blur the differences between applicants, making it more challenging to evaluate genuine skills and suitability.”

Applicants who tailor their experience to the role, communicate clearly and demonstrate adaptability or problem-solving ability are more likely to stand out, the research found.

“Amid the noise of high application volumes and AI-generated content, employers are focused on indicators of role-specific experience, problem-solving capabilities and cultural alignment.”

‘Skill-locked’

Australian Bureau of Statistics figures support the findings, showing one in three unemployed Australians are struggling to find a role matching their skills.

In the September 2025 quarter, 1.2 million Australians were looking for work, including 1 million available to start within a month.

More than one in five said there were too many applicants competing for roles, while over 10 per cent cited insufficient training, qualifications or skills.

Another 11 per cent said available jobs did not offer suitable conditions.

RMIT Online CEO Nic Cola said many workers are effectively “skill-locked”.

“The problem here isn’t that these people don’t want to work,” Cola said.

“It’s that many feel they lack the specific, up-to-date training required to get their foot in the door.

“They are effectively ‘skill-locked’ because the world of work is changing so fast, thanks to massive technological advancements.”

He said greater emphasis on upskilling is needed.

“The solution lies in a more agile, industry-aligned model of learning,” Cola said.

“On top of existing skills, we need to prioritise industry-validated and flexible upskilling courses, allowing people to prove their competence to employers quickly.

“We need to bridge the gap between human potential and industry needs.

“If we can make our training as flexible as the businesses they serve, we’ll do more than just fill jobs – we’ll future proof the entire workforce.”