What's Covered Four predictions for FY26/27 — The patterns we think will define hiring across Australia in the year ahead. State of the market — Sector activity, vacancy trends, and the top ten roles being hired right now. Compensation trends — Where salaries are growing, the widening AI premium, and what's driving failed offers. The risk talent landscape — Operational risk, compliance, risk transformation, and the rise of AI, tech and cyber risk. Where Australia is actually hiring — A state-by-state read on where the labour market is hottest, steadiest, and most measured. Conclusion & what to do about it — Our take on what the year ahead means for employers and candidates. Methodology & sources — How we put this together, and where the underlying data comes from. 01 Four Predictions for FY26/27 What's Really Moving in FY26/27 We analysed hiring activity across the Australian market, drawing on data from SEEK, Indeed, LinkedIn, Jobs & Skills Australia, regulatory schedules from APRA and ASIC, and the latest reporting from WTW, Aquent and others. After a turbulent 2024 and 2025, the picture for the FY26/27 year is one of recalibration rather than contraction. Here are the four patterns we're predicting will define the year ahead. 1. A "Goldilocks" market is forming 82% of Australian employers plan to recruit in 2026, with replacement hiring (34%) leading slightly ahead of growth hiring (31%). The post-pandemic frenzy has cooled, but this isn't a downturn. It's a more functional, sustainable market for both sides. 2. Risk hiring is in its biggest cycle in a decade A wall of regulatory deadlines (CPS 230, AML/CTF Tranche 2, FAR expansion) is colliding with the rapid rise of AI, tech and cyber risk as boardroom priorities. Operational risk, compliance, and risk transformation are all hiring at once, and "convergence" candidates are commanding the biggest premiums. 3. Salaries are growing, for some Median salary increases are projected at 3.5% nationally for 2026, but the distribution is uneven: C-suite remuneration is growing at 5.3% YoY versus 3.1% for directors and individual contributors. Specialist and "hybrid skill stack" roles capture most of the upside. 4. It's an employer market, for now Applications per job ad rose 8.5% in 2025, deepening candidate pools across most sectors. But conditions vary sharply by state and specialism, and with confidence-driven hiring cycles, the balance is expected to shift several times throughout the year ahead. 02 State of the Market Hiring is Steady, but Selective Australia's labour market is returning to trend. Unemployment closed 2025 at 4.1%, and while job ads have moderated from their post-pandemic peaks, vacancy rates remain above historical averages in nearly every industry. The question for FY26/27 isn't whether to hire. It's where the right skills actually live. The headline story for FY26/27 is one of strategic recalibration. Where 2022 and 2023 saw indiscriminate hiring and 2024 saw cautious freezes, the year ahead is shaping up as a year of precision recruitment. Fewer hires, but each one tied more tightly to a measurable business outcome. Sectoral growth tells the most useful story. Healthcare, professional services, and education are projected to deliver almost two-thirds of new roles by November 2026, with Aged & Disabled Carers (+28%), Software Programmers (+27%) and ICT Security Specialists leading specific occupation growth. For employers, that means moving fast in growth corridors and being willing to redesign roles around outcomes, not legacy job descriptions. Key stats: 82% of Australian employers plan to recruit in 2026, with NSW most likely to cite replacement hiring (36%). 2.0% national job vacancy rate — well below its 2022 peak but still above the 1.4% historical average. +8.5% increase in applications per job ad in 2025, signalling deeper candidate pools and sharper competition for roles. Sector Hiring Activity (Recruitment rate, Australia, latest available) Hospitality: 68% Healthcare: 54% Construction: 48% Professional Services: 44% Tech & ICT: 41% Retail: 32% Mining: 28% Top 10 Roles Being Hired in Australia, FY26/27 Registered Nurse Software Engineer Aged Care Worker Project Manager AI Engineer Sales Manager Cybersecurity Analyst Data Engineer Marketing Manager Skilled Tradesperson 03 Compensation Trends The Pay Gap is Widening, by Skill Not by Tenure Median salary growth is steady at around 3.5%, but that headline obscures the real story: a small group of high-leverage roles are pulling away from the rest of the market. Employers are using pay strategically to retain critical talent, not to give blanket increases. Salary Growth by Role Tier (YoY) C-Suite: +5.3% Specialists: +3.8% Directors: +3.1% IC Roles: +3.1% Creative: +1.6% Entry-level: +1.3% Source: Aquent 2026 Australian Salary Guide; WTW Salary Budget Survey 2026 C-suite remuneration is growing nearly 75% faster than that of directors and individual contributors, reflecting a market that prizes accountability and AI orchestration capability at the top. The AI Premium 56% wage premium for roles requiring AI skills, compared to non-AI equivalents — up from 25% just one year earlier. Workers with multiple AI competencies see that premium climb to +43% above peers with no AI skills. The signal: this isn't a gradual repricing, it's a structural shift in how Australian employers value skills. Key stats: 42% of failed offers are due to rising salary expectations — the #1 reason candidates walk away from final negotiations. −18.9% drop in entry-level new hires since 2023, as routine and transactional roles are absorbed by AI tooling. $236k average annual salary for a Director of Artificial Intelligence in Australia, among the fastest-growing executive titles. 04 The Risk Talent Landscape Risk Hiring is Having its Biggest Year in a Decade Two forces are colliding: a wall of regulatory deadlines (CPS 230, AML/CTF Tranche 2, FAR expansion, climate disclosure) and the rapid rise of AI, tech and cyber risk as boardroom priorities. The result is a risk talent market unlike anything we've seen, where operational risk, compliance, risk transformation and technology risk are all hiring at once, and candidates with cross-disciplinary experience are commanding the highest premiums. The headline you'll read everywhere is that AI Engineer is the #1 fastest-growing role on LinkedIn's 2026 Jobs on the Rise list for Australia. That's true. But for risk teams, it's only half the story. The bigger shift is that AI, tech and cyber risk experience is now a baseline expectation across operational risk and compliance roles, not a specialism. What we're seeing in the market: senior risk and compliance leaders resigning faster than they can be replaced, often without a role to go to. Multi-year regulatory change programmes, lean teams, and burnout from continuous transformation work are taking their toll. 43% of placements in this sector now go through specialist networks rather than open advertising, because candidates with the right blend of regulatory depth and tech literacy aren't on the open market. The premium right now sits with "convergence" candidates: operational risk professionals who understand AI governance, compliance leaders who've worked on cyber uplift, and risk transformation specialists who can translate APRA standards into operating models. Pure-play technical risk profiles are getting harder to place at senior levels. Clients want commercial thinking and regulatory fluency on top. Key stats: +245% surge in demand for AI & machine learning skills since 2023, now spilling directly into AI governance, model risk and tech risk hiring. 1 Jul — CPS 230 contract remediation deadline, driving urgent hiring in operational resilience, third-party risk and business continuity across APRA-regulated entities. 30k+ projected national shortfall of cybersecurity professionals by 2026, with 54% of security teams already reporting they're understaffed. What's Driving Risk Hiring in 2026 (Relative hiring activity by risk specialism, AU) Operational risk: High Cyber & tech risk: High Compliance ®g change: High Risk transformation: High AI & model governance: Rising Financial crime / AML: Rising Enterprise risk: Steady Source: APRA, ASIC, AUSTRAC regulatory schedules; Ink market observation FY26/27 Top Risk Roles in Demand, FY26/27 Operational Risk Manager — CPS 230 implementation · third-party & resilience focus Technology & Cyber Risk Lead — Avg $187k · cross-functional with ops risk and IT Compliance Manager, Reg Change — AML/CTF Tranche 2, FAR, climate disclosure Risk Transformation Lead — Target operating model, framework uplift, change delivery AI Governance / Model Risk — Emerging role · ethics, oversight, conformity assessment Chief Risk Officer — #2 fastest-growing role nationally · convergence leadership 05 By State Where Australia is Actually Hiring National averages hide a lot. While NSW has slowed and Victoria is shifting toward technology and healthcare, WA and SA are running some of the country's tightest labour markets. If you're recruiting in FY26/27, the state matters as much as the role. Western Australia — Tightest Market One of the strongest labour markets nationally, supported by population inflows and government incentives for trades. Fast-moving recruitment with continued pressure for skilled workers in trades, engineering, mining, logistics and infrastructure. South Australia — Standout Growth The standout employment performer over the last year. Relaxed building regulations are fuelling construction, and government efforts to attract innovation talent are paying off. Expect elevated hiring across construction, project services and professional roles. Victoria — Broadly Positive Strong demand in healthcare, construction, education and technology. Melbourne is now outpacing Sydney in growth and on track to become Australia's largest city. Pressure on talent demand will intensify, but benefits won't be evenly distributed. Queensland — Stable, Solid Post-COVID growth has cooled but remains solid. Interstate migration continues to expand the labour force. Demand looks stable across construction, community services, health, logistics and regional roles for 2026. New South Wales — Most Measured Slowed more noticeably than other regions. Employment has moved sideways for around a year, and Sydney has seen one of the sharper drops in job ads vs other metros. Bigger applicant pools, longer hiring decisions, steadier hiring in tech, professional services and government-adjacent sectors. National Outlook — Recalibrating GDP growth is forecast to strengthen in 2026 to its highest rate since 2022, with inflation easing toward 2.4%. The labour market is rebalancing rather than contracting. Opportunities favour agencies and employers who can move with precision when confidence lifts. 06 Conclusion 2026 Isn't a Downturn. It's a Recalibration. The Australian recruitment market in FY26/27 looks very different from the post-pandemic frenzy, and that's a good thing. Conditions are stable, candidate pools are deeper, and salary growth is back to a sustainable 3.5%. But underneath the steady headlines, this is a market that rewards precision. AI is repricing skills faster than most organisations can respond. The C-suite is pulling away from the rest of the salary curve. State-by-state conditions vary more than they have in years. For employers, the imperative is clear: redesign roles around outcomes, hire for convergence rather than pure specialism, and partner with recruiters who actually know your market. For candidates, particularly in risk, compliance and transformation, the message is just as direct: cross-disciplinary fluency across regulatory, operational and tech/cyber risk isn't a nice-to-have anymore. It's the lever for the next career move. Hiring in FY26/27? Let's talk. Success starts when you think differently. Think Ink. 07 Methodology & Sources This report aggregates publicly available Australian and global hiring data from late 2025 through early 2026, with year-on-year comparisons drawn from 2023 to 2025 baselines, and forward-looking projections for FY26/27 informed by regulatory schedules and Ink's own market observation. Where possible, we have prioritised primary-source data from government bodies (ABS, Jobs & Skills Australia) and major hiring platforms. Salary figures are reported in AUD where available; global benchmarks (e.g., AI wage premiums) are drawn from PwC and Cornerstone analysis. All sectoral hiring rates are based on Staffing Industry Analysts' November 2025 release. Key Data Sources:  Australian Bureau of Statistics (ABS) Jobs & Skills Australia SEEK Employment Trends 2026 Indeed Hiring Lab AU 2026 LinkedIn Jobs on the Rise 2026 APRA (CPS 230, FAR) ASIC 2026 Corporate Plan AUSTRAC AML/CTF Tranche 2 Aquent 2026 Australian Salary Guide WTW Salary Budget Survey 2026 Staffing Industry Analysts (SIA) Nov 2025 PwC Global AI Jobs Barometer Cornerstone Skills Economy Report 2026

Imagine this scenario . You’ve made it through multiple rounds of interviews, and suddenly the final stage involves psychometric testing. For some, this feels like uncharted territory. But what if we told you it didn’t have to be daunting? Whether you’re a candidate preparing for the test or a client determining the best-fit hire, understanding psychometric assessments is key. Last week, one of our clients faced a crucial hiring decision. Two candidates were at the 3rd stage interview and final interview was the testing phase. Initially, the preference leaned toward one candidate. However, after the psychometric test results came in, the offer was extended to the other candidate, who excelled during this phase. That’s how insightful and game-changing these assessments can be. This blog will break down psychometric testing, its key components, and how to best prepare, whether you’re a professional looking for guidance or a client seeking clarity on the process. What Is Psychometric Testing? Psychometric tests are tools designed to measure a person’s capabilities, personality traits, and suitability for a specific job role. Unlike traditional exams, these assessments focus less on what you’ve learned and more on who you inherently are and how you think. They’re invaluable for employers to identify the best fit for their teams and for candidates to show their strengths beyond résumés and interviews. Types of Psychometric Assessments Psychometric tests come in various formats, each targeting different attributes and competencies. Here's what you might encounter: 1. Personality Questionnaires These tests focus on identifying personality traits linked to success in specific roles. Are you an analytical thinker? A collaborative team player? Personality quizzes aim to highlight these inherent traits. 2. Ability Tests Designed to evaluate competencies like verbal reasoning, numerical analysis, and logical thinking, these tests are commonly used because they’re strong predictors of job performance potential. 3. Situational Judgment Tests (SJTs) These assessments present real-life workplace scenarios to evaluate your decision-making and problem-solving skills. 4. Motivation and Values-Based Assessments These aim to measure what emotionally drives you in a professional setting. Are you motivated by growth opportunities or inspired by a company’s core values? These evaluations are helpful for both candidates and employers in ensuring alignment. 5. Competency-Based Assessments Often used early in the recruitment process, these tests determine if a candidate’s skills match the role's requirements, focusing on technical and behavioural competencies. How Clients Benefit From Psychometric Testing For clients, psychometric tests provide objective and data-driven insights. They allow employers to make informed hiring decisions by looking beyond surface-level qualifications and interviews. By incorporating these assessments, clients can: Reduce hiring risks by identifying candidates who align with long-term company objectives. Ensure a fair recruitment process free of biases. Evaluate team dynamics by better understanding personality types and work motivations. How to Prepare for Psychometric Tests If you’re a candidate, preparation isn’t about cramming or memorising, as it would be for traditional exams. It’s about familiarising yourself with the test format and sharpening relevant skills. Here’s a breakdown of some key strategies: 1. Sharpen Your Mind While psychometric tests measure innate traits and abilities, brushing up on reasoning and logic can be beneficial. Engage in activities like: Word games Puzzles Sudoku Crosswords Reading extensively can also boost vocabulary and comprehension. 2. Practice, Practice, Practice Many test creators (like SHL, Hogan, or Talent Q) offer sample questions on their websites. Familiarising yourself with these sample questions will help you feel comfortable when the actual test begins. Practice frequently and track your progress. 3. Know the Test Format On test day, understanding the structure of the test can save time and improve your performance. Tips for tackling psychometric tests include: Reading all instructions carefully. Balancing speed with accuracy. Moving past difficult questions to return to them if time allows. 4. Communicate Any Needs If you have specific requirements, such as accommodations for disabilities, it’s important to raise this with your recruiter or test administrator beforehand. Ensuring these needs are met will help you perform at your best. 5. Create the Right Environment Taking the test in a quiet, comfortable space helps minimize distractions. Being in the right headspace can significantly impact your results. 6. Be Authentic Many tests, particularly personality assessments, work best when you’re honest. Instead of answering with what you think the employer wants to hear, be yourself. These tests aim to measure who you truly are, so showing your genuine self will lead to a better job fit. For Employers Wondering how to introduce psychometric tests seamlessly? Start by choosing tests that align with the role's requirements and offering clear guidance to candidates. Transparency about how these assessments work will reduce applicant anxiety and create a positive hiring experience. Myth-Busting Psychometric Testing There are plenty of myths surrounding psychometric tests. Here are three we’ve debunked: “You can’t prepare for them.” While you can’t change your personality, familiarising yourself with test formats and sharpening your abilities can lead to better outcomes. “The tests are biased.” When used correctly, psychometric assessments are among the fairest ways to evaluate candidates, leveling the playing field for everyone. “They’re not useful for companies.” On the contrary, these tests allow organisations to hire candidates whose skills and values align with their business goals, ultimately improving performance and retention. Next Steps Psychometric assessments offer a win-win opportunity. Candidates gain insights into their strengths while clients make hiring decisions with confidence. By taking the time to practice and understand these tools, candidates can improve their chances, and clients can build stronger, more cohesive teams. For clients , if you’re ready to incorporate psychometric testing into your hiring process, ensure the tests align with your organisational goals and job requirements. A seamless integration starts with clear communication and the right tools. For candidates , don’t hesitate to ask for guidance if you’re uncertain about what to expect. Whether it’s understanding the purpose of the test or getting clarity on the skills being assessed, having a little extra information can go a long way in helping you prepare. On top of that, practicing with sample questions or timed tests can boost your confidence and give you a better sense of the pacing. At the end of the day, preparation isn’t just about studying—it’s about feeling empowered and ready to showcase your strengths! Have questions about psychometric testing or want tailored advice? Our team is here to guide you every step of the way.