Australia’s Labour Market Momentum Carries Into 2026 

What a Resilient 2026 Economy Means for Australia’s Hiring Market 

Australia’s labour market continues to show resilience heading into 2026, even as signs of moderation begin to appear across several industries. Insights from the January 2026 edition of the Australian Labour Market Monthly highlight a stable employment environment overall, supported in part by the contribution of temporary visa holders, while also pointing to emerging shifts in demand across occupations and sectors. 

Temporary Visa Holders Supporting Workforce Needs 

A key feature of the latest report is its “Hot Topic” analysis on temporary work visa holders. Drawing on administrative data from the Department of Home Affairs and the Australian Census and Temporary Entrants Integrated Dataset, the report highlights the important role temporary migrants play in addressing labour shortages and supporting industries across Australia. 

Temporary visa holders are often concentrated in key sectors such as healthcare, hospitality, agriculture, and technical trades. Their geographic distribution also reflects workforce demand, with higher participation in regional areas and industries experiencing persistent skill shortages. This data reinforces the importance of migration policy settings in supporting economic growth and workforce sustainability. 

Labour Market Still Strong, but Softening 

While Australia’s labour market remains resilient overall, there are signs of softening in some sectors. 

Over the 12 months to November 2025, trend employment declined in: 

• Wholesale Trade 

• Manufacturing 

• Agriculture, Forestry and Fishing 

These shifts reflect global economic pressures, automation trends, and changing consumer demand patterns. However, they have been offset by growth in other areas, particularly professional and service-based roles. 

Unemployment Edges Up Slightly 

The national trend unemployment rate increased modestly to 4.3% in November 2025, compared with 4.0% a year earlier. 

Tasmania was the only state or territory to record a slight decrease in unemployment, from 4.1% to 4.0%. 

While the increase is relatively small, it signals a gradual easing of labour market tightness after the extremely strong post-pandemic employment period. 

Where Jobs Are Growing 

Employment growth varied across occupations, with the strongest gains recorded in: 

• Professionals: +198,100 

• Community and Personal Service Workers: +82,000 

• Technicians and Trades Workers: +11,900 

This reflects Australia’s growing demand for skilled knowledge workers, healthcare and social support roles, and technical trades. 

For sectors such as early childhood education, health services, and community support, areas we work closely with at Entrée Recruitment and Entrée Early Years, this continued growth signals ongoing opportunities for candidates and employers alike. 

Where Jobs Are Declining 

Some occupations recorded declines, including: 

• Clerical and Administrative Workers: –29,700 

• Machinery Operators and Drivers: –23,400 

These changes align with automation, digital transformation, and evolving workplace models that are reshaping traditional administrative roles. 

What This Means for Employers and Jobseekers 

For employers 

• Workforce planning remains critical, especially in sectors facing skills shortages. 

• Access to skilled migrants and temporary visa holders continues to be an important workforce strategy. 

• Investment in training and retention will help offset labour market shifts. 

For jobseekers 

• Demand remains strong for skilled professionals, trades, and community services roles. 

• Upskilling and adaptability are key to staying competitive. 

• Understanding industry trends can help guide career decisions. 

Looking Ahead 

Australia’s labour market remains fundamentally strong, supported by population growth, migration, and ongoing demand for skilled workers. However, the slight rise in unemployment and sector-specific declines highlight the importance of proactive workforce planning and career development. 

For businesses, staying informed about labour market trends can support smarter hiring decisions. For candidates, understanding where growth is occurring can help shape career paths in a changing economy. 

References 

• Jobs and Skills Australia – Australian Labour Market Monthly, January 2026 Edition 

• Department of Home Affairs – Temporary Visa Holder Data 

• Australian Census and Temporary Entrants Integrated Dataset – Integrated Data Resource