Insights

Peak Tightness to Selective Hiring

2025 - 2026

Slowdown in job ads in capital cities, but strong in the regions

Data Snapshot: H1 2026 • Updated May 2026

4.1%-4.3% Unemployment Rate

~59% Hiring Intent ▼ Down from 71%

The labour market moved from peak tightness into a cooler, more selective phase, with slower overall employment growth.
Capital-city job advertisements softened while regional demand held up better across essential services and trades.
Employers became more cautious on approvals, extending hiring cycles and lifting applicant competition for open roles.

~1.1% Expected Growth

Selective hiring is expected to continue as employers prioritise hard-to-fill and revenue-critical roles.
Regional demand should remain more resilient where essential services and trades capacity are still constrained.
Recruitment processes will need sharper qualification, faster shortlists, and clearer role requirements to secure preferred candidates.

A structural transition away from volume hiring toward extreme high-quality placement (quality over quantity).

An immediate increase in business demand for pre-vetted, agile, and instantly deployable candidate shortlists.

High Talent Competition

Exhibiting a relatively more resilient demand structure.
Sustained stability particularly observed within essential services and traditional trades.

Resilient Demand