Regional mobility is crucial for addressing labour shortages, as jobseekers from one region may fill vacancies in another region with few local candidates. However, this requires a willingness amongst employers to consider candidates from across regional borders. This study examines the influence of regional identity on hiring decisions in the Belgian labour market, focusing on perceptions of Flemish recruiters towards Flemish and Walloon candidates. Through a state-of-the-art vignette experiment, genuine Flemish recruiters evaluated fictitious resumes of school leavers that signalled regional identity through their name, place of birth, residential address, secondary school location, and/or language proficiency. Walloon candidates consistently score lower on key hiring metrics. Structural equation modelling reveals that Flemish employers hold negative perceptions of Walloon candidates, particularly regarding availability, interpersonal competency, attitude, and willingness of employers, employees, and clients to cooperate with them. These findings highlight the persistent role of regional identity stereotypes in reinforcing labour market inequalities and impeding mobility as a strategy to mitigate labour market tightness.