URGENT UPDATE: A new report from the Australian HR Institute reveals alarming job market trends, with over 25% of employers anticipating layoffs in the upcoming September quarter. This marks one of the highest levels of redundancy intentions recorded, signaling a troubling shift for Australian workers facing diminished job security and stagnant pay.
The survey, which gathered insights from more than 600 senior business leaders, highlights a growing disconnect between worker skill sets and employer needs. Sarah McCann-Bartlett, chief executive of the Australian HR Institute, stated, “The projected increase in redundancy activity reflects a range of environmental and workplace changes, not only cost reduction by employers.”
Economic pressures are mounting, forcing companies to reevaluate their workforce strategies in response to evolving market conditions. The report indicates that expected pay increases for the year ending July have dipped to 2.9%, down from 3.3% last quarter. While only 14% of employers plan to implement pay freezes in the next quarter, millions of Australians could experience wage stagnation.
The survey also reveals a contrasting trend: despite impending layoffs, 69% of organizations are looking to recruit more staff within the next three months. However, a significant 33% report challenges in finding suitable candidates, down from 38% in June 2025. Employee turnover rates, encompassing both voluntary and involuntary departures, remain steady at 15% for the 12 months leading to June 30.
“Despite softer economic growth, the demand for skilled workers remains strong,” McCann-Bartlett emphasized. She urged job seekers to consider upskilling, recommending free or low-cost online courses to enhance their employability. “Being proactive, curious, and open to change will support them in the workplace,” she said.
As this situation develops, the focus remains on how both employers and job seekers will navigate these challenging conditions. The urgency for workers to adapt and enhance their skills has never been more critical. Share this news to keep others informed about the shifting landscape of the Australian job market.
