“The projected increase in redundancy activity therefore reflects a range of environmental and workplace changes, not only cost reduction by employers,” she said.
The economic pressures facing Australian businesses have intensified in recent months, with many companies forced to reassess their workforce requirements amid changing market conditions.
The report also found expectations for pay increases in the 12 months to July have fallen to 2.9%, down from 3.3% over the last quarter.
However, only 14% of employers reported that they are planning to implement a pay freeze in the next quarter.
This still would see the wages for millions of Australians stagnate.
Pay rise expectations have fallen to 2.9%, with only 14% planning a pay freeze.
While a number of businesses will be looking to lay off staff, the Australian HR Institute also says there is a jump in the number of businesses looking to add to the workforce.
According to their figures, 69% of organisations say they plan on recruiting over the next three months.
A further third are saying they are currently experiencing difficulties finding workers, although this is down from 38% in June 2025.
Overall average employee turnover, which includes involuntary and voluntary turnover, remains at 15% for the 12 months until June 30.
“Despite softer economic growth, the demand for skilled workers remains strong,” McCann-Bartlett said.
“However, the responsibility for raising skills does not lie solely with employers.”
McCann-Bartlett said those looking to get into the workforce could consider upskilling.
“Job seekers should consider specialist training, and there are plenty of free or low-cost online courses that can help separate them from the crowd,” she said.
“Being proactive, curious, and open to change and learning will support them in the workplace.”
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