Hiring activity in the first quarter of 2026 has shown clear signs of movement. This has been influenced by evolving business priorities, ongoing transformation projects, and shifting candidate expectations. With both Sydney and Melbourne experiencing active but nuanced markets, businesses are reassessing how they attract and retain high performing talent in an economy shaped by cost control, regulatory change, and increasing reliance on technology.
Melbourne began 2026 with stable hiring conditions. National unemployment held at 4.2 percent and workforce participation remained strong at 66.8 percent(Source: ABS Labour Force, February 2026), creating a healthy but competitive foundation for recruitment. Although Victoria is experiencing slightly softer demand compared with other states, employers continue to hire and movement across industries remains steady.
Below is an overview of what we have seen in the market across accounting support, payroll, qualified finance and accounting, and technology throughout Q1.
Q1 has delivered one of the busiest starts to the year, with our job volumes up 17% compared to the same period last year. Demand is strong across both permanent and contract recruitment, driven largely by major system upgrades and team restructuring.
In the payroll market, project and transformation activity has surged. With Preceda reaching end of life, many organisations are now forced to migrate to another system with Dayforce emerging as the most in demand replacement. We’re also seeing a significant rise in Workday HRIS implementations, creating a wave of requirements for system specialists, project teams, and backfill support for BAU payroll operations.
The compliance landscape remains extremely active, and upcoming regulatory changes (most notably Payday Super) are placing additional pressure on payroll functions of all sizes. This is driving heightened demand for senior payroll professionals, remediation specialists, and candidates with strong governance and award interpretation capability.
We’re also seeing a clear shift in candidate expectations across accounting support and payroll. With more organisations increasing their in office days to 3 or 4, candidates are becoming more selective around culture, flexibility, leadership, and salary competitiveness. Top talent continues to move quickly, and employers offering strong benefits packages, clear development pathways, and hybrid working remain the most successful in securing quality hires and retaining top talent.
Q1 started with a notable uptick in hiring across finance teams compared to the end of 2025. This was paired with an initial surge of candidates entering the job market having previously waited to get through the Christmas period before starting their job search. Since this initial surge, hiring has remained steady across financial services with most finance teams looking at ways to maximise outputs from their own team rather than adding headcount.
Utilising technology to become more efficient has been the most consistent trend we’ve seen when speaking to senior finance leaders across the sector. While leaders are optimistic and open minded about how AI can save time across their teams, tangible success stories still seem to be limited to anecdotal time-saving exercises, as opposed to wide reaching shifts in the way finance teams are working. We expect to see this topic continue to remain high on finance teams priorities for the rest of the year.
Market conditions across qualified finance have been mixed throughout Q1. While job vacancies and permanent hiring activity have increased, candidate availability has also risen due to restructures and organisational realignment across several industries
Demand for high performing finance talent remains strong. Finance analysts, risk managers, compliance specialists and tech enabled accountants are highly sought after as organisations respond to growing regulatory obligations and increased digital transformation.
Despite the broader availability of talent, the market remains tight for exceptional candidates. Individuals with strong technical capability and commercial communication skills continue to progress through recruitment processes quickly, often securing multiple opportunities at once. These top performers are still commanding premium salaries, and employers are willing to meet these expectations for the right people.
We have seen salary levels stabilise more broadly; however, top performers remain an exception and are dictating terms at the upper end of the market.
A clear differentiator in successful hiring this quarter has been speed. Companies with efficient, streamlined processes are securing their preferred candidates, while lengthy or overly complex interview stages are causing candidate disengagement and loss of momentum.
Additionally, employer brand is playing an increasingly important role. Businesses running disjointed processes or engaging multiple agencies without clear coordination risk diluting their market reputation, which can ultimately impact their ability to attract and secure the best talent.
Tech hiring sentiment has been positive throughout Q1, with rising demand across several specialist areas. The market is still largely employer driven, yet the most sought-after candidates are beginning to regain leverage due to increased activity and competing offers.
Tech and STEM areas continue to act as major growth drivers nationally. More job seekers are active, and application volumes are rising. However, budgets remain tightly controlled and hiring is focused on critical roles, leading to a competitive but opportunity rich landscape for top tier candidates.
One clear trend emerging again is the rise of counteroffers. This mirrors patterns from the 2021 to 2023 period, where high demand prompted organisations to retain talent through salary increases or added benefits. Over the past three months, we have seen this behaviour reappear more frequently as employers attempt to hold onto strong performers.
What this means for hiring managers:
Right sizing offers is critical. Under offering in the current market increases the risk of candidates accepting counteroffers. Ensuring your recruitment partners understand a candidate's true motivation to move is essential. If the decision is purely financial, retention through counteroffer becomes far more likely.
Culture remains your strongest retention tool. Even in a competitive market, candidates who feel supported, valued and secure are less willing to take risks. With economic uncertainty top of mind, many employees are hesitant to leave roles where they feel comfortable and stable.
While the broader economy continues to shift, the recruitment market across Sydney and Melbourne remains active and opportunity driven. Employers who invest in clear communication, thoughtful process design and a compelling employer brand are best positioned to secure and retain leading talent through 2026.
If you would like tailored advice on hiring trends or support with your workforce planning for the year ahead, our team is here to help.
Curated and edited by Gemma Crolla, Digital Marketing Manager, Ambition Group Australia. Gemma has been working within the recruitment industry for over 15 years. Researching, writing and consulting with clients in professional & corporate services.
%20(2).jpg)
%20(1).png)
.png)
