Australia Job Market Update: Employment and Hiring Trends in August 2026

Australia’s labour market remains resilient, but the latest data points to a more balanced and selective hiring environment.

As at 3 August 2026, the latest available ABS Labour Force data relates to June 2026. It shows strong monthly employment growth, unemployment holding at 4.4 per cent and workforce participation rising to 67.0 per cent.

However, other indicators reveal a more nuanced picture. Job vacancies have eased, online job advertisements are lower than a year ago and fewer Australians are changing employers.

For businesses, this means talent is becoming more accessible in some markets, but specialist and hard-to-fill capability remains difficult to secure. For candidates, opportunities remain available, although employers are becoming more deliberate about who they hire.

Australia’s job market at a glance

The employment and labour-force figures are seasonally adjusted. Vacancy, advertising and mobility figures come from separate releases with different reference periods and should be interpreted as complementary indicators rather than direct comparisons.

1. Employment increased strongly in June 2026

Australian employment increased by 76,300 people in June, bringing total employment to approximately 14.82 million.

Full-time employment increased by 29,300 people, while part-time employment rose by 47,000. Part-time positions therefore represented approximately 62 per cent of the net monthly employment increase.

That does not necessarily mean employers are making a long-term shift away from full-time hiring. The ABS noted that part of June’s employment increase came from people who had been waiting to begin a job in May, creating a stronger-than-usual movement into employment during June.

The less volatile trend measure provides additional context. Trend employment increased by 32,300 people, or 0.2 per cent, during June. Over the year, seasonally adjusted employment grew by 252,000 people, equivalent to 1.7 per cent.

Market interpretation: June was a strong month for employment, but businesses should avoid treating one month’s part-time increase as proof of a permanent change in workforce strategy.

2. Unemployment remained low while participation increased

Australia’s seasonally adjusted unemployment rate remained at 4.4 per cent when rounded, although the number of unemployed people increased by 12,700 to 686,800.

At the same time, the participation rate rose by 0.3 percentage points to 67.0 per cent. This means more Australians were either employed or actively looking for work during the month. The employment-to-population ratio also increased to 64.0 per cent.

The Reserve Bank of Australia continues to describe labour-market conditions as somewhat tight relative to full employment. However, the RBA also expects conditions to ease gradually as economic growth and labour demand moderate.

For employers, a 4.4 per cent national unemployment rate does not mean every occupation is equally difficult to recruit. Hiring conditions continue to vary significantly by profession, skill level, industry and location.

3. Hiring demand remains substantial, but it has cooled

Australia recorded 329,500 job vacancies in May 2026, down 2.1 per cent from February and 2.1 per cent from May 2025.

Private-sector vacancies declined by 1.4 per cent over the quarter to 293,800. Public-sector vacancies fell more sharply, decreasing by 7.9 per cent to 35,700.

Jobs and Skills Australia recorded 205,400 online job advertisements in June 2026. Advertisements increased by 0.7 per cent during the month but were 3.9 per cent lower than a year earlier. Despite the annual decline, online job advertisements remained approximately 20 per cent above the monthly average recorded in 2019.

Together, these indicators suggest that hiring demand remains elevated compared with pre-pandemic conditions, but employers are operating in a more measured market than during the peak labour shortages of 2021 and 2022.

4. Employers are still recruiting, but difficulty varies by occupation

Almost half of Australian employers, 48 per cent, recruited during the June quarter of 2026.

Among employers who recruited, 44 per cent reported difficulty filling vacancies, down from 49 per cent in the June quarter of 2025. Technicians and Trades Workers remained the most difficult major occupation group to recruit, with 58 per cent of employers reporting difficulty filling those positions.

Separate monthly data showed that 51 per cent of employers had recently recruited in June, while 20 per cent expected to increase staffing levels over the following three months. Staff turnover remained the main reason for recruitment, accounting for 59 per cent of recruiting employers, compared with 31 per cent recruiting solely to fill newly created positions.

This distinction matters. Recruitment activity is not being driven entirely by business expansion. A large share of hiring is focused on replacing departing employees and maintaining existing workforce capacity.

5. Job mobility continues to fall

Approximately 1.0 million Australians changed employers or businesses during the year ending February 2026. This produced a national job mobility rate of 7.2 per cent, down from 7.7 per cent in the previous year and well below the 9.6 per cent recorded in 2023.

More than half of employed Australians, 56 per cent, had been in their current role for less than five years. However, the proportion who had been in their role for less than one year declined to 16.4 per cent, compared with 21.1 per cent in 2023.

Younger workers remained the most mobile group:

• 12.0 per cent of workers aged 15 to 24 changed jobs

• 8.1 per cent of those aged 25 to 44 changed jobs

• 4.6 per cent of those aged 45 to 64 changed jobs

The annual retrenchment rate was also relatively low at 1.8 per cent, down slightly from 1.9 per cent in the previous year. This supports the view that the labour market is moderating rather than experiencing widespread job losses.

The decline in mobility shows that fewer employees are changing organisations. However, the data does not directly establish whether this is due to greater satisfaction, economic uncertainty, fewer opportunities or another factor.

6. Underemployment remains an important part of the market

The national underemployment rate increased to 6.5 per cent in June 2026. This measures employed people who are willing and available to work additional hours.

Separate ABS research found that, in February 2026:

• 822,800 part-time workers wanted and were available to work more hours

• This represented 18 per cent of all part-time workers

• 48 per cent of those seeking more hours would have preferred full-time employment

• 43 per cent had actively taken steps to find additional hours

This demonstrates why employment growth should not be assessed through headcount alone. Hours, job security and whether workers can obtain their preferred level of employment are also important measures of labour-market health.

What the latest data means for Australian employers

Focus on capability, not application volume

Job advertising remains active, but lower mobility means many strong candidates may not be actively applying. Employers recruiting specialist or leadership capability may still need targeted search, direct engagement and market mapping.

Benchmark each position individually

National employment figures can hide significant differences between occupations. Salary, location, flexibility, industry reputation and the availability of qualified candidates should be assessed for each vacancy.

Make the recruitment process efficient

Clear responsibilities, timely feedback and coordinated decision-making reduce unnecessary delays. Employers should determine essential interview stages before going to market and avoid adding approval steps after the process has begun.

Communicate the complete employee proposition

Salary remains important, but employers should clearly explain leadership, flexibility, development, progression, team structure and the longer-term purpose of the role.

Plan for replacement and growth hiring differently

Replacement recruitment often requires speed and continuity. Newly created roles may require deeper market education, clearer role design and greater alignment between internal stakeholders.

What the latest data means for Australian job seekers

Opportunities remain available, but hiring is more selective

Employment is growing and recruitment activity remains substantial. However, annual job advertisements and vacancies have eased, so candidates may encounter more competition than during the peak post-pandemic hiring period.

Show evidence of impact

Candidates should demonstrate outcomes rather than relying only on responsibilities. Revenue generated, costs reduced, projects delivered, teams developed and operational improvements provide employers with stronger evidence of value.

Assess the quality of the opportunity

Candidates considering part-time, contract or flexible work should clarify expected hours, security, progression opportunities and whether additional hours may become available.

Specialist capability remains valuable

Experience that directly addresses a business problem, regulatory requirement, technical gap or transformation priority can differentiate candidates in a more considered hiring market.

Outlook for Australia’s labour market

The Australian labour market is best described as resilient but gradually rebalancing.

Employment continues to grow, unemployment remains comparatively low and participation is strong. At the same time, vacancy levels have eased, annual job advertising has declined and workers are changing jobs less frequently.

The RBA expects labour-market conditions to soften gradually rather than deteriorate sharply. Its May 2026 baseline forecast has the unemployment rate rising to approximately 4.7 per cent by mid-2028, although economic forecasts remain subject to considerable uncertainty.

For employers, this creates an opportunity to approach recruitment more strategically. Talent may be becoming more accessible overall, but the strongest candidates and those with specialist expertise will not necessarily be reached through advertising alone.

For candidates, the market continues to offer opportunity, but clear positioning, relevant capability and evidence of long-term value are becoming increasingly important.

Frequently asked questions

What is Australia’s unemployment rate in 2026?

Australia’s seasonally adjusted unemployment rate was 4.4 per cent in June 2026.

How many people are employed in Australia?

Approximately 14.82 million Australians were employed in June 2026, an increase of 76,300 during the month and 252,000 over the year.

Is Australia’s job market still strong?

Australia’s labour market remains resilient, with continued employment growth and relatively low unemployment. However, falling annual job advertisements, lower vacancy levels and declining job mobility show that the market is becoming more balanced.

Are Australian businesses still hiring?

Yes. Almost half of employers recruited during the June quarter of 2026, although hiring difficulty and demand vary substantially by industry and occupation.

Is job hopping declining in Australia?

Yes. The national job mobility rate fell from 7.7 per cent to 7.2 per cent in the year ending February 2026.