One in five Australian employers plans to lay off employees! Hiring intentions hit new lows, these industries most at risk

Reprinted from WeChat public account: Sydney Today

As cost of living pressure continues to rise, the Australian labor market is sending uneasy signals again. The latest report shows thatNearly one in five Australian employers plan to complete layoffs by the end of March this year.

According to the Australian Quarterly Job Outlook report released by the Australian Human Resources Institute (AHRI), 19% of organizations expect to reduce headcount in the first quarter of 2026. For Australian workers who are under economic pressure, this data is undoubtedly worrying.

Nearly one in five Australian employers expect to make staff redundant by the end of the March quarter. (AFR/Louie Douvis)

Despite the seriousness of the situation, it is worth noting thatThis level of layoff intentions remains the third lowest since the survey was conducted in early 2023.

From the perspective of industry distribution, the medical and education industries are facing the most prominent layoff pressure, with both intentions accounting for 26%; the production industry follows closely, with 23%.In terms of sectoral differences, the public sector’s intention to lay off employees (23%) is rarely higher than that of the private sector (18%), and the gap between the two has narrowed significantly at the beginning of 2026.

Regarding the much-discussed impact of artificial intelligence (AI), the report pointed out that more than one-third of employers believe that while AI improves productivity, it also creates new skills gaps.

Research shows that the current impact of AI is more reflected in reshaping job content rather than simply replacing positions.

The report also revealed some little-known “hidden rules” in recruitment. Data shows that 69% of employers actively exclude certain groups when recruiting. The most common situations include candidates with criminal records, drug and alcohol abuse, or mental illness.

In addition, candidates who disclose that they have a long-term medical condition, a disability, or are 55 years or older are often excluded from consideration.

What is even more frustrating for job seekers is thatRecruitment intentions across Australia have dropped to historic lows. Less than 60% of organizations currently plan to hire new employees in the next quarter, which is the lowest level since the survey was launched.For those employees who have already faced or are about to face layoffs, this is undoubtedly adding insult to injury.

In response to the current employment dilemma, a spokesman for the Australian Human Resources Association said in an interview with Channel 9 that Australians should ensure job security by embracing lifelong learning, mastering complementary skills with new technologies, and improving transferable skills such as problem solving and communication.

The spokesperson emphasized that as the workforce ages and job design evolves, it is critical for employees to keep up with changing skills needs. Those professionals who are actively committed to continuous learning and demonstrate practical skills are best able to remain competitive in the changing landscape.

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