Australia market insights

Takeaways from people2people's 2026 Report

Australia market breakdown

Key trends and insights

Australia’s job market has tightened in early 2026, with job ads down 6% and unemployment sitting at 4.4%. While hiring confidence remains steady at 48% and job seeker confidence is higher at 58%, applications have risen 6%, pointing to a more competitive market for candidates. Wage growth is also sitting close to inflation, with private sector wages at 3.2%, public sector wages at 3.8%, and inflation at 3.4%, reinforcing a hiring environment where cost pressure and talent availability are both shaping employer decisions.

Replacement hiring remains the dominant force across Australia, particularly in NSW at 36% and 34% across SA, QLD and VIC, highlighting continued workforce turnover rather than broad expansion. Growth hiring is still present, though generally more measured, while net overseas migration has moderated from its post-pandemic peak. With temporary visa arrivals down 21% and permanent visa holders down 3%, competition for skilled talent is likely to intensify. Although 33% of employers are willing or very willing to sponsor overseas talent, 41% remain unwilling, putting added pressure on attraction, retention, and workforce planning strategies.

2026 Australia Labour Market

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4.3%

Unemployment Rate

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66.9%

National Participation Rate

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2.1%

National Application Increase

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-6%

Annual National Job Ad Change

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58%

Job Seeker Confidence Index

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48%

Hiring Confidence Index

Australia job seeker sentiment

How engaged are people in today's job market?

Across Australia in 2026, job seekers are displaying a more measured and pragmatic approach to their careers. After a period of fluctuating confidence and economic adjustment, many Australians are focusing on job security, work-life balance, and alignment with company values rather than chasing rapid pay rises or multiple offers. Flexibility remains non-negotiable, but there’s a noticeable shift towards seeking meaningful, sustainable roles that provide growth and stability.

Candidates are also showing greater awareness of employer reputation — favouring organisations that invest in wellbeing, communication, and genuine culture over surface-level perks. Overall, Australia’s employment landscape feels more grounded: job seekers are clearer about what they want, and more discerning about where they choose to invest their time and talent.

36%

of jobseekers are passively looking or hesitant to move

62%

of job seekers are engaged in at least 3 interview processes

14%

of job seekers say their salary is below market levels

27%

of job seekers say salary doesn't reflect performance or workload

Are you being paid your worth?

Know the Australia market before you apply

Employment trends shaping Australia labour market in 2025

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2026 Employment & Salary Report

Stay ahead of your market across Australia

Take a closer look at what’s driving hiring in your industry, from shifting employer priorities to the roles most in demand. This comprehensive report reveals the key trends shaping recruitment and workforce strategy this year, providing your business with a competitive edge in today’s uncertain labour market.


  • Benchmark your company's attraction and retention strategies
  • Find out what job seekers are looking for in 2026
  • Identify emerging and current hiring and salary trends