The Australian HR Institute’s latest quarterly report reveals significant workforce challenges ahead, with redundancies rising and recruitment difficulties persisting.
Redundancy Intentions
- More than a quarter (27%) of employers plan to make workers redundant in the September 2025 quarter – the second highest level since the survey began in May 2023
- Public sector redundancy intentions (39%) significantly exceed private sector plans (25%)
- Distribution and production sectors show the highest redundancy rates at 35% each
Recruitment Challenges
- One-third (33%) of recruiting employers report current recruitment difficulties, down from 38% in June 2025 but below the long-term average of 39%
- Public sector (39%) faces greater recruitment challenges than private sector (32%)
- Distribution (36%) and health and education sectors (35%) experience the most difficulty
Hard-to-Fill Positions
- Skilled tradespeople are the most difficult vacancies to fill (33%)
- Professionals/associate professionals follow at 29%, with this category being the primary concern for public sector employers (47%)
- Senior leaders and executives rank third at 24%
AI Impact on Workforce
- A substantial 61% of respondents anticipate AI will reduce some roles in their organisations
- Public sector employers are more likely to predict this impact (81%) compared to private sector (57%)
- Notably, 32% of employers report that one in five roles may shift significantly, highlighting the critical need for reskilling and redeployment strategies
The findings suggest Australian organisations face a complex period of workforce transformation, balancing redundancies with ongoing skill shortages whilst preparing for AI-driven workplace changes.
