More than 7 in 10 Australian employers are planning to recruit in 2026

More than 7 in 10 Australian employers are planning to recruit in 2026, with hiring demand being driven by replacement needs, business growth, and workforce change, according to people2people Recruitment's latest workforce research. At the same time, employers are balancing hiring with a broader workforce agenda focused on productivity, AI and digital upskilling, and long-term workforce planning.

Key findings:

• Over 72% of employers plan to recruit in 2026
• 35% are hiring to replace departing staff
• 24% are hiring to support business growth
• 13% are hiring due to restructuring or seasonal demand
• 28% are not recruiting
• Employers' top workforce priorities in 2026 are productivity and performance (58%), AI and digital upskilling (51%), attracting top talent (47%), and workforce planning (45%)

"Australian employers are entering 2026 with a clear hiring intent, but it is not growth at any cost," says Suhini Wijayasinghe, Head of HR at people2people Recruitment. "What the data shows is a hiring market shaped by both immediate business need and longer-term capability building. Employers are recruiting, but they are also thinking much more carefully about how those hiring decisions support productivity, future skills, and workforce resilience."

Replacement hiring remains the biggest driver of recruitment activity, with 35% of employers planning to recruit to backfill departures, while 24% are hiring to support growth and 13% are recruiting due to restructuring or seasonal demand. That mix suggests the market remains active, but disciplined, with employers focused on maintaining capability while making selective investments in expansion. 

"This is a market where replacement hiring still matters most, which tells us retention and attraction remain closely linked," says Wijayasinghe. "Businesses are still feeling the impact of workforce movement, even as they look for opportunities to grow. The challenge is not simply hiring people, but hiring in a way that strengthens the organisation over the next 12 to 24 months." 

The report also shows that recruitment is sitting within a much wider workforce strategy in 2026. Productivity and performance rank as the top employer priority at 58%, followed by AI and digital upskilling at 51%, attracting top talent at 47%, workforce planning at 45%, and employee engagement at 41%. Cost control also remains important for 35% of employers, highlighting the pressure to grow capability without allowing labour costs to drift unchecked.

"What stands out is that hiring is no longer being viewed in isolation," says Wijayasinghe. "Employers are trying to solve for productivity, digital capability, engagement, and future workforce shape at the same time. That means hiring decisions are becoming more strategic, with a stronger focus on role value, adaptability, and where talent can create the greatest impact."

The workforce agenda also signals that employers are becoming more targeted in how they compete for talent. In 2026, 44% plan to increase base pay, 44% are offering additional learning and development opportunities, 40% are improving employee recognition, 33% are enhancing wellbeing support, and 30% are introducing new work arrangements. Together, these shifts suggest employers are widening the value proposition beyond salary alone as they respond to candidate expectations and retention pressure.

"In a more selective market, employers need to think carefully about what makes them competitive," says Wijayasinghe. "Pay still matters, but so do development, flexibility, recognition, and wellbeing. The organisations that will attract well in 2026 will be those that present a more rounded and credible employment offer."

For employers, the message is clear: 2026 is shaping up as a year of deliberate hiring, where attraction strategies must support not just open roles, but broader business transformation.

"Hiring confidence remains real, but so does the expectation that every hire should add value quickly," says Wijayasinghe. "The strongest employers this year will be the ones that align recruitment with capability, productivity, and long-term planning, rather than treating it as a standalone process." 

www.people2people.com.au 

About people2people: people2people is an Australasian recruitment company built on an established reputation for providing professional and personalised recruitment services since early 2005. At people2people recruitment, their focus is on identifying potential today to build careers and businesses of tomorrow. Recruitment expertise includes accounting & finance, business support, executive, government, human resources, legal, marketing & digital, property, sales, supply chain management and technology. 

PR Contact: Lisa Solomons @ 360 PR | e: lisa@360pr.com.au | p: 0416 175 518.