
Australia’s hiring market is ending 2025 on a high: 51 % of employers are recruiting, but 45 % can’t fill roles, and 44 % have vacancies open for more than a month.
For agency leaders, this is your year-end opportunity, a data-backed roadmap for where to focus, who to target, and how to build momentum into Q1 2026.
1. Demand Is Peaking: 51% of Employers Are Hiring
The Data:
Half of Australian employers (51%) are recruiting or have recruited in the past month — up from 49% six months ago.
Why It Matters:
This surge means one in two prospects you contact is in-market. It’s the strongest signal in over a year that hiring momentum will carry into early 2026.
Market Split:
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Large employers (20 + staff): 80% hiring — enterprise demand is booming.
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SMEs (5–19 staff): 44% hiring — still active but cautious.
End-of-Year Actions:
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October: Audit your client mix. Rebalance toward enterprise accounts.
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November: Secure Q1 preferred supplier agreements.
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December: Don’t power down — while competitors pause, position for January starts.
In short: Every second employer is hiring. Visibility, timing, and consistency now define your 2026 pipeline.
2. Talent Shortages Intensify: 45% Can’t Fill Roles
The Data:
Recruitment difficulty has climbed to 45%, up four points since March. That’s nearly nine in ten hiring employers struggling somewhere in the process.
Difficulty by Segment:
Segment | Difficulty % | Note |
---|---|---|
Capital Cities | 43 | Stable but competitive |
Regional Areas | 49 | Worsening shortage |
SMEs | 43 | Need external help |
Large Employers | 50 | Specialist roles in demand |
What It Means for Agencies:
When 45% can’t fill roles, you’re not just providing talent — you’re relieving operational pain.
Seasonal Playbook:
- Lead with speed-to-hire metrics — decision-makers want results before the break.
- Offer contract-to-perm options for 30 + day vacancies.
- Target large and regional employers facing the biggest difficulty spikes.
In short: Difficulty equals urgency. Position your agency as the antidote to hiring pain before 2026 budgets reset.
3. Regional Markets Are the Sleeper Growth Story: 55% Hiring Rate
The Data:
Regional Australia now outpaces metro hiring (55% vs 50%).
Drivers:
Infrastructure spend, healthcare expansion, resources, and hybrid work are fueling regional recruitment.
But here’s the twist: regional employers face 49% difficulty rates, six points higher than capital cities.
How to Capitalise in Q4:
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Bridge metro-to-regional talent. Market lifestyle and hybrid flexibility.
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Build partnerships. Join regional chambers and councils before the new year.
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Promote lifestyle value. “Live regional, work national” messaging resonates.
In short: The regional market combines high activity, high urgency, and low competition — a 2026 expansion opportunity hiding in plain sight.
4. Turnover, Not Growth, Drives Most Hiring: 58% Replacement Rate
The Data:
58% of hiring is to replace leavers; only 31% adds net new roles.
Why It Matters:
This high-turnover environment means recurring revenue for agencies, but it also highlights your clients’ retention problem.
Immediate Q4 Opportunities:
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Build “always-on” candidate pipelines for repeat roles.
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Offer temp cover while clients recruit permanents.
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Analyse patterns — which clients refill the same positions most often?
Advisory Advantage:
When turnover is chronic, become a strategic partner, not just a supplier:
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Share exit and onboarding insights.
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Recommend improvements to onboarding and engagement.
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Use your placement data to help clients reduce churn in 2026.
In short: Replace roles quickly now, and position your agency to help clients prevent those same roles from reopening next year.
5. Growth Hiring Is Back: 24% Plan to Increase Headcount
The Data:
Nearly one in four employers plans to expand staff over the next three months; only 3% expect cuts.
Why It Matters:
Growth hiring is where the margin lives — senior appointments, retained searches, exclusive briefs.
Timing Advantage:
Most companies finalise 2026 budgets by December. If you’re not in those conversations now, you’ll miss the first wave of new roles next year.
End-of-Year Actions:
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October: Identify clients planning expansion.
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November: Propose headcount planning workshops.
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December: Lock in exclusive partnerships for Q1 hiring.
In short: The turnover market funds today. The growth market defines your 2026. Secure both before year-end.
How Tech Accelerates Your End-of-Year Execution
As hiring ramps up and candidate scarcity persists, agencies that scale efficiently without adding headcount will dominate early 2026.
Modern recruitment tech delivers three end-of-year advantages:
1. Speed: Beat the 44% vacancy delay
AI-powered sourcing, multi-board posting, and auto-scheduling compress time-to-shortlist from days to hours.
2. Scalability: Handle Q4 + Q1 demand peaks
Automated workflows and analytics help consultants manage more roles while maintaining quality.
3. Reach: Bridge metro and regional markets
Video interviewing, digital onboarding, and cloud access enable seamless nationwide delivery.
What to Look For:
- AI candidate matching and sourcing automation
- Compliance-ready workflows for labour hire
- Mobile and analytics capabilities for real-time visibility
End-of-Year Insight: Implement now, not later. Agencies that upgrade tech in Q4 go live in January — just in time for the Q1 hiring surge.
Industry Focus: Where the Year-End Demand Is Strongest
Top Sectors Driving Hiring in Q3–Q4 2025:
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Health Care & Social Assistance
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Construction & Infrastructure
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Professional & Technical Services
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Accommodation & Food Services
Strategic Focus:
Build vertical expertise and pre-empt client needs before the January brief lands. Labour-hire firms, in particular, should prepare for strong contract demand in construction and hospitality through Q1.
Outlook for Q1 2026
The data points to a strong start to 2026:
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51% hiring rate sustained
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45–48% difficulty expected
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44% still facing extended vacancies
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24% planning staff growth
Forecast: 10–15% revenue growth potential for well-positioned agencies through mid-2026.
Turning Data into Direction for 2026
The latest Jobs & Skills Australia REOS data sends a clear signal: demand is strong, talent remains scarce, and the opportunity for agencies is unprecedented. Half of all employers are hiring, yet nearly as many can’t fill critical roles. That gap between intent and execution is where leading recruitment and labour-hire firms will win.
The agencies that act now, not later, will enter 2026 with a competitive edge: stronger client relationships, faster delivery, and more intelligent systems that scale. Those who invest in the right technology automation, analytics, and AI won’t just keep up with demand; they’ll stay ahead of it.
Forward-thinking agencies are already adopting integrated platforms like Access Evo, using automation and data intelligence to deliver faster, more compliant results.