Economic uncertainty and the rapid normalisation of AI are redefining how Australian organisations hire in 2026 – and raising the stakes for every talent decision.

That’s the view of Caity Read, a HR professional with more than a decade’s experience across some of Australia’s best-known brands, who now leads people and culture at Chain Social Agency.

Speaking with HRD, Read says HR leaders need to prepare for a year where hiring windows shorten, expectations of capability increase, and “verified talent” becomes a strategic differentiator.

Economic confidence is dictating how – and how fast – organisations hire

According to Read, economic confidence will remain one of the biggest drivers of recruitment behaviour this year.

“Hiring decisions are increasingly tied to market sentiment – when confidence dips, businesses pause. When it rises, they move quickly,” she explained.

“What’s changed isn’t just whether businesses hire, but how fast they need to move when conditions feel right. This has shortened hiring windows and increased the cost of a wrong hire, placing more pressure on businesses to recruit with certainty rather than optimism.”

For HR leaders, that means talent strategies must be designed for volatility – with the flexibility to pause and accelerate, and with enough pipeline and insight to move decisively when the market turns.

AI is no longer experimental – and job design is shifting

If economic confidence is shaping when organisations hire, AI is changing who they hire and what for.

“AI is the other major force reshaping recruitment – and it’s no longer experimental,” Read said. “Organisations are actively redesigning roles around efficiency, automation and leverage.”

The flow-on effect: traditional job titles and linear career paths are giving way to outcome-driven roles that demand both technical and commercial capability.

“As a result, we’re seeing a shift away from traditional job titles and toward outcome-driven roles that require both technical capability and commercial thinking,” she said.

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