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Jan 23, 2026

Strong job growth is not easing hiring pressure for Australian employers.

Strong job growth for Australian employers

Recent data from Jobs and Skills Australia shows continued growth across Australia’s job market, particularly in care, accounting and utility services. Health care and social assistance remain the largest contributors to employment growth, while demand in essential services continues to rise.

At first glance, this appears to be a positive signal for the economy. In practice, many employers are experiencing increased pressure.

Growth is intensifying competition for skills

When several sectors grow at once, competition for skilled workers increases. The number of available roles rises, but the supply of experienced, job-ready people does not move at the same pace.

For employers, this is showing up as longer recruitment timeframes, increased competition driving higher salary expectations, greater strain on existing teams and ongoing retention challenges.

A strong labour market does not automatically resolve workforce gaps. In many cases, it exposes them.

Skills shortages remain across key sectors

Businesses are expanding services while struggling to attract experienced staff. Utilities and infrastructure organisations face delivery commitments without a deep enough talent pool to support them. Professional services firms increasingly need people who can contribute immediately, rather than after long onboarding or training periods.

In this environment, recruitment is no longer just about filling vacancies. It is about securing certainty and continuity.

Workforce planning is becoming more strategic

More Australian employers are now taking a longer-term view of workforce supply. International recruitment and migration are increasingly being considered as part of a broader workforce strategy, rather than a last-minute solution.

When done well, this approach allows businesses to build stability and reduce reliance on constant rehiring. When done poorly, it can introduce risk, cost and frustration.

The difference lies in how recruitment, migration and settlement are managed together.

Using migration as a workforce tool

Migration should not be treated as an administrative process alone. Visa pathways directly influence retention, workforce continuity and long-term business planning.

Employers who approach migration strategically, with the right advice and support, are better positioned to build teams that can grow with their business rather than constrain it.

As Australia’s labour market continues to shift, the key question for employers is not whether skills shortages exist. It is whether their workforce strategy is broad enough to respond.

Author

Bridget Gilbert
Head of Talent Acquisition Partnerships

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