The key to recruiting well in 2026: transparency and an open mind

One of our highlights of 2025 was attending an Indeed labour market webinar led by senior economist Callam Pickering, which used the platform’s data to analyse trends for recruiting into 2026.

What stood out to us wasn’t a single statistic, but this broader insight: fear and uncertainty are increasingly shaping how people think about job security, mobility and career decisions. And the key to overcoming them? Transparency, openness and a willingness to go where other employers aren’t. 

With that in mind, we took a look at what the latest labour market data really tells us, why confidence has become a critical factor in talent strategy, and how employers can navigate this new economic landscape to build their own talent advantage.

A labour market shaped by fear rather than fundamentals

Despite persistent headlines about economic uncertainty, Australia’s labour market has remained more resilient than many people assume. Jobs have continued to be created, large-scale layoffs have stayed relatively low, and overall participation remains strong by historical standards. 

The latest ABS data shows that Australia-wide unemployment in November 2025 stood at 4.3%, workforce participation was 66.8% and the number of employed people was actually 1.3% higher than the year before. 

What has changed, however, is sentiment.

Over the past couple of years, cost-of-living pressures have placed genuine strain on households, particularly when it comes to the price of housing, energy and everyday essentials. And while wages have actually been rising more quickly than at any point since the GFC (3.4% in the 12 months to December 2025) any increases are still only just enough to keep pace with inflation. 

If this alone wasn’t enough to make people concerned, it comes at the same time as many employees grow concerned about the role of artificial intelligence. 

On this front, Indeed found that, while only a fraction of job ads referred to generative AI, the number that did had grown by 310% in just the 12 months to May 2025. The fear that this means the robots are coming for our jobs has been amplified recently with several high profile instances of companies laying staff off in favour of AI. 

The result is a workforce that feels more cautious, even in sectors where demand remains solid. 

Why confidence matters so much to recruitment

This matters because confidence plays a significant role in hiring. When people feel uncertain, they’re less likely to change jobs, more hesitant to negotiate and more inclined to prioritise perceived security over opportunity. Again, this is reflected in ABS data, which reveals that job mobility has been decreasing over the past couple of  years.

From an employer’s perspective, a lack of movement might look like improved retention. But, as we wrote recently, it often reflects the fact that people are staying put even when they’re not fully satisfied, simply because the perceived risk of moving feels high.

This can lead to a less engaged workforce and low productivity, as well as spike in turnover when confidence returns.

It also has an immediate and profound impact on recruitment. When fewer people are willing to move, the pool of genuinely motivated, high-quality candidates becomes smaller. And this, in turn, means longer hiring timelines, more cautious decision-making from candidates and increased competition for the same limited group of mobile talent.

What employers can do to access the best candidates in 2026

The good news is that the Indeed data also provided valuable insights into exactly what employers can do to overcome challenges in today’s labour market and attract the right talent.

Here’s what it found. 

1. Advertise pay, clearly and early

In a cautious labour market, salary information has become one of the most effective ways to pique the interest of the right candidates. 

Indeed’s data shows that almost 97% of job searches say salary information determines whether they apply for a role in the first place. And yet, just 36% of job ads included it.

When confidence is low, the absence of pay information increases perceived risk. Candidates are less willing to invest time in the application process without knowing whether the role will meet their financial needs. So including salary ranges reduces friction at the very first decision point. 

2. Embrace remote and hybrid work where it genuinely fits

Despite some pullback from pandemic-era peaks, job seekers still often want remote and hybrid work. However, Indeed’s data shows that only a minority of job ads explicitly offer it (12%).

For candidates weighing whether to move roles in an uncertain environment, flexibility can help shift the risk-reward calculation. It can also dramatically expand the available talent pool, particularly for roles that are otherwise constrained by geography.

3. Broaden hiring lenses and recruit for diversity

Another theme Indeed identified in its data was how much talent remained under-utilised due to narrow hiring practices. 

This is particularly true of older workers. Just 56% of employers said they were open to hiring candidates aged between 50 and 64, while only 21% said they would consider hiring someone above that age. 

But it also applies to recent migrants (especially those from non-English speaking backgrounds), the neurodivergent and women.

But employers’ conservativeness can be your gain.  As we’ve written previously (in relation to neuroinclusion) widening your recruitment lens can actually be a competitive advantage, giving you access to skills, perspectives and talents your competitors aren’t tapping into. 

4. Reduce uncertainty wherever you can

Across all of these findings, there was a common thread: in an environment shaped by caution, transparency mattered. 

Clear information about pay, flexibility, expectations and progression can reduce perceived risk and help candidates overcome any hesitancy.

In other words, the talent advantage in 2026 won’t come from offering more but from being clearer.

Bringing it all together

Taken together, the data points to a labour market that may be less fragile than it feels, but also more sensitive than it looks. 

Economic fundamentals remain relatively sound, but fear and uncertainty are shaping candidate and employee behaviour in ways that directly affect recruitment, retention and workforce performance.

For employers, the risk isn’t simply misreading the data; it’s also misreading how people respond to it. Reduced job mobility doesn’t necessarily signal contentment. Increased application volumes don’t always translate into confident candidates. And short-term stability can mask longer-term engagement and turnover risks.

The organisations best placed to attract and retain talent in 2026 will be those that recognise this gap between perception and reality, and respond deliberately. 

After all, in an employment market shaped by caution, confidence could become your differentiator, and an open mind and transparency your strategic advantages.

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Need help planning your recruitment for 2026? Get in touch with our team of HR experts.