Engineering Recruitment – Market Commentary – April 2026

 

 

 

 

Engineer hiring started the year very strongly. After a lacklustre 2025, the start to 2026 took us by surprise, and conditions were very positive. Broadly speaking, most companies hire when there’s business & consumer confidence. The recent events in the Middle East, unfortunately, have created uncertainty amongst businesses & consumers – they’re now more concerned about inflation, interest rates and future growth prospects than they were at the start of the year. The result is less hiring activity.

There are, however, some pockets which are buoyant – most noticeably the defence network, data centres & HVAC.

Engineering & Manufacturing Operations

The transition into 2026 initially signalled a long-awaited turning point for the Australian economy. Following a stagnant 2025—a year defined by “flat” performance and a cautious “wait-and-see” approach toward capital expenditure—the first weeks of the new year saw a significant resurgence in business confidence. This “spark” manifested in a robust uptick in recruitment activity, as organisations finally moved to fill long-vacant roles and invest in growth strategies that had been side-lined for the previous twelve months. For the first time in several years, the market sentiment was characterised by genuine momentum and proactive investment.

However, this period of optimism was abruptly curtailed by the onset of geopolitical conflict and the subsequent strikes on Iran. The resulting instability has sent shockwaves through global supply chains, most notably evidenced by the skyrocketing price of diesel. The impact on the domestic market was instantaneous: the escalating costs of freight, fuel, and raw materials have created a challenging inflationary environment. Consequently, almost every business sector is now grappling with significant overhead increases, forcing a pivot from the expansionary mindset seen at the start of the year back toward a strategy of rigorous cost management and resilience.

Positively, there still remains a critical demand for Operations Managers and General Managers who possess the strategic oversight to navigate supply chain volatility and lead large-scale, mission-critical projects. For professionals with these skill sets, the current landscape offers not just stability, but a chance to be at the forefront of the country’s most vital infrastructure developments. Companies also continue to seek Engineers – particularly in mechanical, electrical, and mechatronic disciplines—to design and maintain complex, high-density environments. There are also opportunities for Engineers with companies involved in the data centre supply chain such as switchboard manufacturers, rack manufacturers, etc.

Engineers within the defence supplier network are also in high demand, particularly Systems Engineers, Electronics, Hardware & Software Engineers. This is partly due to the Middle East conflict and partly due to a global trend of longer-term increased defence spending by many defence forces.

Building & Mechanical Services and Data Centres

These sectors are performing strongly at present. There is strong demand for Project managers and Senior Project Managers with at least 5 years of HVAC project management experience.
They’re needed for a range of clients but particularly for data centre builds. Data centres are also very actively recruiting operational staff such as HVAC Technicians & Electricians. They’re attracting a lot of these staff members from traditional HVAC companies, thereby creating demand to back-fill roles with these companies.

Technology

Broadly speaking, the primary area where we’re experiencing hiring demand for technology professionals is in the defence sector. We’re actively recruiting Systems Engineers, Electronics, Hardware & Software Engineers, primarily for Adelaide-based clients. Interestingly, some of these clients recognise that they’re struggling to recruit enough professionals with the right skills in Adelaide and are employing them to work in small satellite offices in Melbourne or employing them to work remotely in other states.

Resources

Western Australia’s engineering market in 2026 remains driven by mining, oil and gas, and defence, with demand focused on operations, sustaining capital, and brownfield activity rather than large greenfield projects.

Mining continues to dominate, with strong demand for Structural, Mining, Process, Project, Maintenance, Reliability, Electrical, and Mechanical Engineers, as well as planning and production roles. However, attraction challenges persist due to intense competition for talent, FIFO fatigue, high salary-driven mobility, and shortages of experienced mid-to-senior Engineers.

Oil and gas is centred on late-life asset management, brownfield modifications, shutdowns, decommissioning, and LNG tie-backs, driving demand for Mechanical, Piping, Process, and Integrity Engineers. The sector continues to struggle with attracting talent due to short contract cycles, reduced greenfield work, competition from other industries, and uncertainty around long-term investment.

Defence is the fastest-growing sector, underpinned by shipbuilding and sustainment activity, with strong demand for Mechanical, Electrical, Systems, Project, Integration, Commissioning, and Marine Engineers. Key challenges include strict security clearance requirements, rapid demand growth outpacing supply, niche skill requirements, and competition from higher-paying mining and oil and gas roles.