2026 Workforce Reset: Hiring Sentiment, Jobseeker Priorities & the Roles Set to Surge

Australia's workforce is entering a decisive reset in 2026, with job security overtaking flexibility, economic uncertainty driving "job hugging," and demand surging for AI, risk and professional services roles. These findings combine people2people Recruitment workforce research with national labour market data and LinkedIn's Jobs on the Rise 2026 report.

Head of HR Solutions Suhini Wijayasinghe from people2people says, "We're seeing a clear workforce reset in 2026. Job security and financial confidence have overtaken flexibility as the top priorities, and that shift is fundamentally changing how and when people are willing to move roles."

people2people Recruitment: 2026 Outlook

• Based on market activity and workforce data, people2people Recruitment expects:
• Selective hiring focused on AI, risk, revenue and transformation roles
• AI capability becoming a baseline skill across professions
• Hybrid work remaining a key retention lever
• Stronger competition for skilled talent in metropolitan markets
• Sustained demand for senior professionals in risk, legal and leadership roles, alongside reskilling initiatives for mature workers

Job Security Trumps Flexibility as Worker Priorities Shift

According to recent polls by people2people, Australian workers are reprioritising what matters most at work.

• Almost 45% of workers say a pay rise is the top factor that would make them feel financially secure in 2026, followed by a side income (24%), job stability (22%), and work flexibility (8%), indicating a sharp decline in flexibility as a core motivator.
• Generational differences are pronounced. Millennials and Gen Z are least likely overall to look to side income (18%), although Gen Z alone is the most likely cohort to actively pursue it (29%), reflecting both financial pressure and entrepreneurial intent among younger workers.

Economic Anxiety Fuels the Rise of "Job Hugging"

Caution is defining job mobility heading into 2026.

• Three in five Australian workers say they are unlikely to apply for a new role due to concerns about the global economy.
• This trend is especially strong among younger cohorts, with around half of Millennials and Gen Z reporting they are delaying job moves.

National data supports this slowdown. The Australian Bureau of Statistics reports job mobility fell to 7.7% in February 2025, down from 9.6% the year prior, continuing a longer-term decline in job switching*.

Hybrid Work Remains a Red Line for Many

While flexibility has fallen as a primary driver of financial security, it remains critical for retention.

• Two in five Australian workers still do not want to work in the office in 2026, and three in ten would quit if forced back full time.
• Only 30% of workers would accept a full-time return to the office, while 32% would quit, 26% would ask for a pay rise and 10% would complain but stay.
• Among those willing to attend the office, hybrid is the dominant preference with 2-3 days in the office most preferred at 29%.

AI Anxiety Grows Alongside Adoption

Artificial intelligence is both an opportunity and a concern.

• Close to four in ten Australian workers are worried about AI's impact on their job in 2026, with concern highest among Millennials and Gen Z (50%), compared with Baby Boomers (34%) and Gen X (29%).
• Adoption is accelerating with 1 in 4 Australian workers use AI in their day-to-day work, however 1 in 5 Baby Boomers say they don't know how to use AI

The Roles Set to Surge in 2026

LinkedIn's Jobs on the Rise 2026+ report identifies the 5 fastest-growing roles in Australia, dominated by AI, risk, leadership and professional services positions:

1. AI Engineer
2. Chief Risk Officer
3. Mechanical Engineer
4. Director of Artificial Intelligence
5. Organisational Development Manager

"Demand in 2026 is very clearly centred on AI, risk, leadership and professional services roles. These aren't experimental hires - they're mission-critical positions that help organisations manage uncertainty and drive growth," says Suhini Wijayasinghe from people2people.

Online job ads declined 7.2% nationally over the past year, with sharper falls in capital cities than regional areas, though absolute opportunity remains strongest in metro markets (Jobs and Skills Australia; SEEK Employment Report, 2025).

"The organisations that win in 2026 will be those that balance caution with clarity, investing in future-ready skills, offering realistic flexibility, and being transparent about career pathways in an uncertain market," says Suhini.

* ABS Job Mobility, Feb 2025

+ LinkedIn News Australia, Jobs on the Rise 2026, Jan 2026; Forbes Australia, Jan 2026)

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. 

For further information or interview requests, please contact: 

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