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Job seekers are keeping their options open in 2026 as caution and competition rise

Announcement posted by 360PR 08 Jun 2026

Australian job seekers are approaching the market more cautiously in 2026, with 62% now engaged in at least three interview processes simultaneously, according to people2people Recruitment's latest workforce* research. At the same time, 36% describe themselves as passively looking or hesitant to move, up 12% since 2025, pointing to a workforce that is active, but increasingly selective.

Key findings:

  • 62% of job seekers are engaged in at least three interview processes simultaneously
  • 36% are passively looking or hesitant to move, up 12% since 2025
  • 42% say salary is too low
  • The top reasons job offers fall through are poor communication (41%), poor candidate experience (35%), and hiring processes that take too long (31%)
  • 30% worry employers may reject AI-generated CVs and cover letters
  • 41% do not use AI in their job search, while 28% use AI job matching tools and 26% use AI for CV and cover letter writing.

"What the data shows is that candidates are still active, but they are moving through the market more carefully," says Leanne Lazaurs, Recruitment Manager, Specialist at people2people Recruitment. "When 62% of job seekers are in at least three interview processes at once, employers cannot assume interest equals commitment. The market is rewarding speed, communication, and clarity." 

One of the clearest shifts in this year's data is the rise in candidate hesitation. More than a third of job seekers, 36%, now say they are passively looking or reluctant to move, a 12-point increase on 2025. That suggests many candidates remain open to opportunity but are less willing to take risks unless the role is clearly stronger than what they already have. It also reflects a broader stability-first mindset emerging in the labour market, often described as "job hugging", where workers stay closer to the security of their current role while watching the market carefully from the sidelines.

"What we're seeing is cautious engagement," says Leanne. "Candidates are still testing the market, but many are doing so from the safety of an existing role. They are looking harder at role clarity, manager quality, long-term fit, and whether a move is truly worth the risk. Employers need to give people confidence, not just a job description."

The research also highlights why offers are falling over. Poor communication leads the list at 41%, followed by poor candidate experience at 35% and hiring processes that are too long at 31%. Better offers elsewhere account for 24%, reinforcing how quickly strong candidates can move on when recruitment processes lose momentum.

"This is where many employers are losing strong candidates unnecessarily," says Leanne. "Poor communication and slow processes are not minor issues anymore. They are deal-breakers. In a market where candidates are juggling multiple opportunities, every delay creates an opening for a competitor."

AI is also beginning to shape job search behaviour, though adoption remains mixed. While 41% of job seekers say they do not use AI at all, others are using it for job matching, CV and cover letter writing, and email drafting. At the same time, 30% worry employers may reject AI-generated applications, suggesting confidence in the tools is still being matched by uncertainty about employer expectations. 

"That tells us candidates are interested in the efficiency AI can offer, but they are still unsure where employers draw the line," says Leanne. "The opportunity for employers is to be clearer about what they value: authenticity, relevance, and quality of application, regardless of whether a candidate used technology to help structure it."

For employers, the message is straightforward. In 2026, attracting talent is not just about salary. It is about moving quickly, communicating well, and presenting a compelling, credible opportunity from the first interaction through to offer stage.

"The hiring experience has become part of the employer brand," says Leanne. "Candidates are judging organisations in real time, and the businesses that communicate well, move with intent, and offer genuine value will be the ones that convert talent."

www.people2people.com.au

PR Contact: Lisa Solomons @ 360 PR | e: lisa@360pr.com.au | p: 0416 175 518

* over 1,200 respondents