As we close out 2025, I’ve been reflecting on what the Australian job market has thrown at professionals this year and what’s likely coming in 2026. If you’re thinking about your career direction, now’s the time to take stock.

The Numbers

Australia’s unemployment rate has held relatively steady, sitting around 4.1% through the second half of 2025. That sounds healthy, but the number masks significant variation across industries and regions.

Tech sector hiring has been selective. The days of companies hiring speculatively and building huge teams are over. Employers want specific skills and proven experience. Generalists are finding it harder than specialists.

Healthcare, aged care, and education continue to face chronic shortages. If you’re considering a career pivot, these sectors offer genuine stability.

The infrastructure and energy transition sectors are growing, driven by government investment in renewable energy and major construction projects. Engineers, project managers, and technical specialists are in high demand.

Skills That Are Paying Off

Across industries, certain skills keep appearing in job listings:

Data literacy. Not necessarily data science, but the ability to work with data, interpret it, and make decisions based on it. Every industry wants people who are comfortable with numbers.

AI familiarity. You don’t need to be an AI engineer. But understanding how AI tools work, how they can be applied in your field, and how to work alongside them is increasingly expected.

Communication. Clear written and verbal communication has always been valued, but in an era of remote and hybrid work, it’s become a core requirement rather than a nice-to-have.

Project management. The ability to plan, execute, and deliver projects on time and on budget is valued across every sector. Formal certifications (PMP, PRINCE2, Agile) are useful but not always required.

Digital skills. Proficiency with industry-specific tools and platforms. This varies wildly by sector, but the common thread is that employers expect you to be digitally fluent.

The Portfolio Advantage

Here’s where this connects to what I talk about every day: professionals who can demonstrate their skills with evidence are winning over those who simply list them.

In a competitive market, the hiring manager’s question isn’t “Can this person do the job?” but “Which of these twenty qualified people is the best fit?” A portfolio provides evidence that tips the balance.

I’ve seen this play out repeatedly in 2025. Two candidates with similar backgrounds, similar experience, similar qualifications. The one with a well-structured portfolio documenting their project work gets the offer.

Sector-by-Sector Outlook for 2026

Technology: Selective hiring focused on AI/ML, cybersecurity, cloud infrastructure, and data engineering. Full-stack developers remain in demand but face more competition than specialised roles.

Financial Services: Stable demand, particularly in compliance, risk management, and fintech. ESG reporting skills are increasingly sought after.

Healthcare: Ongoing shortages across nursing, allied health, mental health, and aged care. Digital health roles are growing.

Construction and Infrastructure: Strong demand driven by government projects. Project management and engineering specialisations are particularly hot.

Professional Services: Consulting firms are cautiously hiring. Demonstrated expertise (think portfolio evidence) matters more than ever.

Creative Industries: Competitive but opportunities exist, especially for professionals who combine creative skills with commercial awareness.

What to Do Right Now

If you’re planning career moves in 2026, here’s my practical advice:

Update your portfolio before January. Start the year ready. Don’t wait until you’re actively job searching.

Audit your skills against job listings. Search for your target roles on Seek and LinkedIn. Note the skills mentioned most frequently. Identify gaps and make a plan to address them.

Build your network intentionally. Reach out to people in your target roles or companies. Not to ask for a job, but to learn and build genuine relationships.

Get comfortable with AI tools. Spend time experimenting with AI assistants, learning how they can enhance your productivity. This is a skill that will only become more important.

Consider your brand. What do you want to be known for professionally? Make sure your LinkedIn, portfolio, and any online presence consistently reflect that positioning.

The Bigger Picture

Australia’s economy is resilient, but the job market rewards preparation. The professionals who thrive in 2026 will be the ones who invested in their skills, built evidence of their capabilities, and maintained strong professional networks.

Start that work now. Your January self will thank your December self for it.