5 Workforce Trends Shaping 2026 - What Employers Need to Know (and act on)

Apr 24

AHRI’s recent quarterly work report has been released highlighting this years trends so far and reveal the challenges employers may face for the remainder for the year.

Lets take a look at the 5 trends and what you can do to help future proof your organisation.

1: A Softening Labour Market

Hiring intentions are easing: only 59% of the reports respondents indicated plans to recruit in the next 3 months
Redundancy intentions are slowing - indicating employers are pausing and reassessing workforce compostition, demand and costs

Why It Matters: A recalibrating labour market marks an opportunity to optimise your current workforce instead of relying on hiring.

What Employers Can Do: Review the workforce, identify critical roles, skills gaps, and opportunities to utilise talent.

2: ROI On Skills Investment

Employers reported improved workforce capability after years of training and development
60% of reported organisations plan to increase training expenditure over the next 12 months
Technical/practical skills (23%), leadership capability (14%) and AI and generative AI training (14%) were highlighted as top prioriites.

Why It Matters: Upskilling drives retention, innovation and adaptability whilst ensuring employees remain skilled to adapt to the future of work.

What Employers can do: Focus on training investments on both current business needs and emerging capabilities like AI literacy and leadership capability.

3: Leadership & Management Deficit

Leaders were reported to be falling short in critical areas:

36% felt leaders are not proficient in problem solving
31% felt leaders lacked strategic leadership
35% felt leaders lacked team management and people management skills

Why It Matters: Leadership gaps risk performance, engagement and succession pipelines. The gap also increase compliance and WHS, interpersonal conflict and legal risks.

What Employers Can Do: Invest in leadership development programs, coaching/mentoring, risk management and structured succession planning.

4: Critical Thinking At Risk In AI Age

AI adoption and integration is growing, but human-centric skills are lagging
1 in 5 respondents saw critical thinking as essential for AI- driven performance, yet only 7% focus on developing it

Why It Matters: Overreliance on AI without developing human judgement, problem solving, and collaboration skills limit the value AI tools can add to organisations.

What Employers Can Do: Build training programs to strengthen critical thinking, creativity and interpersonal skills alongside AI training.

5: Some Cohorts Still Excluded

7 in 10 of the reports respondents admitted to deliberately excluding certain groups:

48% avoid candiates with criminal records
32% avoid those with mental health conditions
19% avoid people with disabilities
19% avoid people aged 55+

Why It Matters: Excluding talent limits diversity, innovation and potentially access to harder to find skills.

What Employers Can Do: Reveiw recruitment and inclusion policies, explore targeted programs to identify gaps in cohorts.

Key Takeaways For Employers

Reassess workforce needs and composition amid the market recalibration
Continue investing in skills that drive your organisations performance now AND in the future
Close leadership gaps to strengthen strategic decision-making and risk management
Balance AI use with human-centric skill development (What’s you why ? What are you wanting to achieve? How does it impact/benefit people?)
Build inclusive practices to tap into overlooked talent pools

Get The Right Support

FiveSeven can help you build capable, future-ready organisations through policy review, leadership mentoring and training, strategic AI support and embedding inclusive workplace strategies. Reach out for a chat.