The market is entering 2026 with more stability than we saw through much of 2025, but conditions remain uneven by sector. Hiring intent is still cautious and organisations continue to prioritise cost control, productivity and “profitable growth”, yet we’re seeing clearer signs that the downcycle is bottoming rather than deteriorating.
Inflation and interest rates are still the key watchpoints, with most predicting increases this year. This has kept boards and executives in “wait and see” mode on large discretionary programs, but the direction of travel is increasingly toward selective reinvestment rather than blanket freezes. Across NSW, hiring is now framed less around growth-at-all-costs and more around productivity, resilience, and capability uplift. This shift is particularly evident in financial services, technology, digital, professional services and consulting roles that directly enable transformation or operational efficiency.
From a recruitment execution perspective, we continue to see high application volumes for many roles, particularly in Project Services, Support and Corporate Services, which is putting candidate experience under pressure. Lean TA teams and lean agencies are still common and the “candidate service gap” remains a real market dynamic.
Permanent hiring remains measured, with continued emphasis on role consolidation, selective backfilling, and “must-have” hires. Pay has largely normalised compared to the post-COVID peak. Where salaries are still being pushed, it is typically for scarce, business-critical skills and roles that directly tie to revenue, risk, or major transformation outcomes.
AI is now moving from “interest” to expectation. Across engineering, data, product, and even corporate functions, employers increasingly expect candidates to demonstrate practical capability with GenAI tools, alongside strong judgement around security, privacy, and governance. Agentic AI and automation are also emerging as explicit themes in workforce planning discussions, particularly where organisations are trying to increase throughput without increasing headcount.
In NSW Government, the focus on contingent workforce reductions and procurement scrutiny remains, but the pace of cuts appears to be less aggressive than earlier in the cycle as some departments approach delivery constraints. With the 2027 state election on the horizon, we expect a gradual increase in hiring to ensure departments are appropriately resourced, delivery risks are minimised and high-visibility programs are effectively executed.
For technology go-to-market roles, the market is still closer to pre-COVID norms. We’re seeing steady demand in core revenue roles (sales and select sales leadership), while some functions (customer success, certain partner/channel roles) remain more variable and are often tied to broader cost and margin programs.
Sydney is fast-paced, high-energy, and full of possibility. From its harbour lifestyle to its global business footprint, it remains one of the country’s biggest career accelerators — particularly across financial services, technology, and professional services.
The city attracts talent from everywhere, which keeps the market competitive and dynamic. Candidates here value flexibility, progression, and employers who can offer more than just a role; they want purpose, culture, and momentum.
Whether you’re drawn by the coastline, the opportunities, or the sheer scale of it all, Sydney continues to set the pace.
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