Employers face tight competition for talent amid growing salary expectations, willingness to relocate
Hiring intentions among Australian employers have increased for 2026, according to a new report, as skills shortages intensify and professionals become more strategic in their career decisions.
Findings from the Robert Walters 2026 Salary Guide revealed that 80% of businesses plan to hire employees in 2026, up from the 76% a year ago.
Hiring demand is strongest in South Australia, with 88%. This is followed by:
·Western Australia (86%)
·Queensland (83%)
·Victoria (79%)
·New South Wales (73%)
This points to a potential rebalancing of the labour market, away from traditional talent hubs such as Sydney and Melbourne and towards a more nationally distributed jobs market, said Shay Peters, CEO of Robert Walters Australia and New Zealand.
Intense competition ahead
But employers seeking to hire this year can expect intense competition in the labour market, as 85% of businessesare experiencing skills shortages.
Nearly half (49%) of employers also reported longer or more difficult recruitment processes, according to the report.
Queensland saw the highest share of businessesreporting hiring difficulties, with 66%. This is followed by:
·Victoria (58%)
·Western Australia (56%)
·New South Wales (55%)
Peters suggested that organisations should take a strategic approach to address the skills gaps at work.
Organisations must take a strategic approach: upskill existing teams, build leadership capability, and plan talent pipelines before the competition does, Peters said.
If critical roles remain unfilled, it doesn't just slow teams, it directly impacts productivity and growth and puts businesses and the wider economy at risk.
Salary challenges
Meanwhile, another factor behind hiring difficulties of late is high salary expectations, according to 62% of employers.
In the report, 41% of Australian professionals believe that they are underpaid, with 65% of them expecting to receive a pay increase this year.
Employers are planning to meet this demand. The report found that 73% of organisations arelikely to give a salary increase.
But Peters warned that these increases might not be enough to offset the rising cost of living.
Often, increases are purely inflationary, meaning people don't actually feel better off, Peters said.
In New South Wales, employees report lower satisfaction despite higher salaries, while in Western Australia slightly lower pay is accompanied by higher satisfaction.
Peters warned that the mismatch between salaries and living costs is driving some employees to relocate elsewhere.
In fact, the report found that 51% of Australians are now open to relocating, with 70% citing higher salaries.
Employees are now making moves strategically. They're weighing up career growth, lifestyle, and long-term opportunity. This isn't relocation on a whim anymore, for many it's a considered critical step in their career, Peters said.
But employers can also make this strong willingness to relocate an advantage for them, according to the executive.
Employers should see this as an opportunity to tap into a borderless talent market between Australia and New Zealand, Peters said.
Organisations that recognise this, design roles with mobility in mind, and create pathways that align with employees' ambitions will have a clear advantage in attracting and retaining the best talent, which is needed in a tight skills market.
