Hiring Outlook 2026: What Employers Should Plan for This Year
As we move into 2026, employers across Australia and New Zealand are facing a labour market that looks both familiar and new. While headline figures show continued job growth and strong candidate pools, the expectations of workers and the realities of hiring are shifting and that means organisations that plan ahead will be in the best position to secure and retain great talent.
In this year’s hiring outlook, we’ve pulled together the trends and insights that matter most for employers planning their workforce strategy in 2026.
1. The Labour Market Is Strong, But Conditions Are Shifting
Recent data reveals that the Australian labour market ended 2025 on a strong note, with employment surging and unemployment dipping to around 4.1% in December lower than many analysts expected. Full-time job numbers rose sharply, underscoring ongoing demand for workers in multiple sectors.
At the same time, recruitment data suggests that while labour force participation remains high, hiring pressures and recruitment difficulties are easing in some areas offering employers an opportunity to be more strategic about talent acquisition.
In New Zealand, although hiring activity is stabilising, some sectors like construction and professional services continue to feel softer demand, highlighting the importance of nuanced, sector-specific planning.
2. Skills Shortages and Changing Talent Demand Will Persist
Even with a strong labour market, skills shortages remain a key challenge. Many industries continue to report difficulty finding experienced professionals in highly specialised and technical roles from healthcare and IT to engineering and finance.
Organisations should expect:
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A rising emphasis on transferable and “power” skills such as communication, adaptability, and collaboration, skills that help teams thrive in an evolving work environment.
This means hiring strategies that prioritise skills and capability building, not just headcount growth, will be more sustainable in 2026.
3. AI and Technology Are Shaping Hiring Faster Than Ever
Artificial intelligence isn’t just a buzzword; it’s reshaping the way hiring gets done. Australian and New Zealand employers are already turning to AI-enabled tools to streamline recruitment tasks like screening, scheduling, and candidate matching.
This shift offers employers:
At the same time, experts highlight a risk: overly automated hiring experiences can feel impersonal to candidates. Balancing efficiency with thoughtful communication will be critical for employer brand and candidate experience in 2026.
4. Strategic Workforce Planning Is No Longer Optional
One of the biggest lessons from recent market dynamics is this: reactive hiring won’t cut it.
Instead, employers need to take a strategic approach to workforce planning that anticipates future skills, builds internal capabilities, and aligns people strategy with broader business goals. This is especially true in New Zealand, where organisations are increasingly focused on mapping skills needs and developing talent pipelines rather than simply filling roles on demand.
Tips for proactive planning:
5. Expectations Around Work and Culture Are Evolving
While hiring remains robust in many markets, employer expectations around work-life balance, flexibility, and career development are shifting. There’s growing demand among workers especially younger generations, for meaningful work, opportunities for upskilling, and flexible work arrangements.
From flexible work weeks to tailored development programs, organisations that adapt culture and benefits to reflect these preferences will be better positioned to attract and keep talent in 2026.
What This Means for Employers in 2026
2026 isn’t about panic hiring or reactive decisions, it’s about intentional workforce strategy.
✔ Recognise regional and sectoral differences in talent availability
✔ Integrate technology into hiring while keeping human connection alive
✔ Focus on skills development and workforce readiness
✔ Build a compelling employment value proposition (EVP) that reflects workers’ evolving priorities
With thoughtful planning and an eye on both short-term needs and long-term capability, employers in Australia and New Zealand can navigate the year ahead with confidence and competitiveness.
Navigating 2026 With the Right Support
In a labour market shaped by shifting demand, evolving expectations, and rapid technological change, having the right workforce partner can make all the difference. Express Employment Professionals Australia and New Zealand support employers with workforce planning, flexible staffing solutions, and local market insights to help navigate hiring challenges with confidence.
Whether you’re planning, responding to changing conditions, or simply need support finding the right people at the right time, Express is here to help you adapt and move forward in 2026 and beyond.