February 2026 Market Update

Adam Geary

Welcome back to the first full month properly back in the office for 2026 for most of us. The wheels are already turning and next week we’re in March, blink and you miss!

January always carries a slow re-entry feel, calendars fill gradually, decision makers return in waves, and budgets take time to finalise. February, however, gives us a clearer read on the year ahead. It would seem the market is still warming up, but there is genuine appetite to hire. Roles are in market and hiring conversations are active. The difference is that everything is more deliberate and considered, given the recent economic wobble on interest rates.

The Economy:

The macro settings remain tight.

The Reserve Bank of Australia (RBA) lifted the cash rate to 3.85% earlier this month, reinforcing its higher for longer stance as inflation remains stubbornly above target.

As a snapsot, some of the figures from the Australian Bureau of Statistics show:

• Unemployment rate: ~4.1% which is holding steady from previous months
• Participation rate: ~66.7% showing still near record highs
• Employment growth: Continued gains, particularly in full-time roles
• Underemployment: Elevated but stable, showing once more a super resillient and strong Australian workforce.

In short, the labour market remains tight. Participation is strong, employment is high, and while growth across the broader economy is modest, it continues to prove resilient in the face of economic blows like higher inflation.

2026 will be a test for many businesses who are looking to balance growth with investment in the right sectors. The pressure on hiring strategies are continuing as they did in 2025 and whilst many businesses want growth, they need to make sure efficiency and productivity come with it.

The Hiring Sentiment:

February confirms what many suspected in January:

• The market is taking time to warm up
• Hiring is cautious and intentional
• There is clearer planning for Q2 and Q3 (we hope)

Across Marketing, Communications, Digital, Product, Technology, Data and broader commercial roles, hiring intent feels more constructive than this time last year, with many firms talking openly about the plans to go to market for new talent, rather than working internally to identify upskilling opportunities.

It does however remain a market where expectations are not always aligned with available talent, many hiring managers and clients continue to present a wishlist of non-negotiables which en-masse is being met with rebuke by the passive and active talent base.

Employers are seeking high impact operators who can deliver immediate commercial return. At the same time, salary bands remain disciplined and flexibility policies are incresingly tightening with a notable rise in firms within financial services looking to return staff to 4 or 5 days a week in office. That combination is slowing processes and elongating decision cycles, as well as massively narrowing candidate pools as most have flexibility engrained as a must have when looking at new opportunities.

How Are Recruiters Fairing?

One of the clearest trends emerging in early 2026 is organisations returning to specialist Recruiters.

After many businesses have looked to fill roles directly and subsequently seeing vacancies remain open for extended periods due to the talent shortage, we’re now seeing more employers recognising that targeted search and curated networks are critical in a tight talent market.

The “post and wait” approach is proving ineffective for most roles, especially with niche skillsets needed.

Invested Talent has already won mandates with multiple new clients in 2026 as well as continuing to support our many wonderful existing partners. It’s been a solid start, but the roles to recruit are no ‘walks in the park’. Recruiters are being engaged on the tough to fill assignments, it’s good to roll the sleeves up and show our worth once more after a fallow 2024/25.

The Talent Market:

For the strongest talent, the market remains incredibly competitive.

High performers across AI enablement, digital transformation, product leadership, growth marketing and data are in demand and when aligned opportunities arise, processes move quickly.

A consistent theme continues to shape hiring outcomes:

Five days in office remains the single biggest obstacle to attracting top talent.

The majority of candidates are prioritising the following, in top to bottom order:

• Hybrid working flexibility
• Salary
• Culture and leadership quality
• Long-term growth business growth and reputation

Flexibility now outweighs incremental salary increases for most professionals across all ends of the market. Organisations maintaining rigid five day mandates are seeing significantly reduced candidate pools and longer vacancy periods, it really is a problem that will not disappear, with both sides digging in their heels.

What To Expect In February and Beyond:

• Despite modest economic growth, low unemployment and high participation continue to constrain the available talent pools across seniority levels.
• With the Reserve Bank of Australia maintaining higher than hoped for interest rates, hiring decisions are being made cautiously and with clear ROI expectations.
• Organisations are planning hires more confidently than this time last year, but execution remains phased and strategic rather than expansive.
• Top performing candidates with proven commercial impact continue to attract multiple opportunities in what is still a tight market at the top end.
• Hybrid working remains a key decision driver, with many professionals prioritising flexibility and autonomy over incremental financial uplift.
• After experiencing prolonged vacancies, more organisations are turning to specialist recruiters to access targeted and passive talent networks.

How to Stand Out in This Market

For Employers: Clarity and flexibility are your biggest competitive advantages, clearly define the commercial impact of the role, streamline decision making processes and offer a credible hybrid model (where possible) to widen your talent pool.

For Candidates: Be able to articulate measurable outcomes, not just responsibilities, remain realistic on market conditions and demonstrate adaptability particularly around in-office mandates and evolving skill demands such as AI and digital capability.

In Summary

The February market is not red hot, but it is moving in the right direction. There is appetite. There are roles in market. There is clearer forward planning.

The challenge lies on both sides of the fence in alignment between expectations and reality, flexibility and policy, salary and fair market value. Working with Recruiters can help to navigate this minefield, but it’s important for everyone on all sides to keep an open mind when talent is in such short supply and expectations for quality remain high.

As always, if you are hiring, considering your next move, or wanting to sense check the market, feel free to reach out via LinkedIn or directly at [email protected].