New reports confirm that job security in Australia is facing a significant decline, with over 25% of employers planning to cut jobs in the upcoming September quarter. This alarming trend marks one of the highest levels of redundancy intentions recorded, according to the latest survey from the Australian HR Institute.
Urgent update: The survey, which included responses from more than 600 senior business decision-makers, reveals that the mismatch between workers’ skills and employers’ needs is driving this surge in layoffs. CEO Sarah McCann-Bartlett states, “The projected increase in redundancy activity reflects a range of environmental and workplace changes, not only cost reduction by employers.”
Economic pressures are mounting for Australian businesses, forcing many to reassess their workforce strategies amid shifting market conditions. This report comes as expectations for pay rises have also dipped to 2.9% for the next 12 months, down from 3.3% just a quarter ago. While only 14% of employers plan to implement a pay freeze, the stagnation of wages for millions of Australians remains a critical concern.
Despite the looming job cuts, a significant number of businesses are still looking to expand their workforce. According to the report, a robust 69% of organizations plan to recruit in the next three months. However, many are struggling to fill skilled positions, with 33% reporting difficulties in hiring, a decrease from 38% in June 2025.
Overall employee turnover, which includes both voluntary and involuntary separations, stands at 15% for the year ending June 30. McCann-Bartlett emphasizes, “Despite softer economic growth, the demand for skilled workers remains strong.”
For job seekers, McCann-Bartlett encourages upskilling as a proactive measure. “Job seekers should consider specialist training, and there are plenty of free or low-cost online courses that can help separate them from the crowd,” she advised. Embracing change and continual learning is essential in today’s competitive job market.
As layoff intentions soar, the Australian workforce faces an uncertain future. Workers must stay agile and adaptable to navigate these pressing challenges. Stay tuned for further developments as the situation unfolds.
