Engineering Recruitment – Market Commentary – January 2026

 

 

Australia Wide Engineering Recruitment has been operating for 47 years and 2025 was amongst the most difficult trading periods we’ve experienced. Whilst hiring in the public sector kept the unemployment rate at healthy levels, our experience was that hiring confidence in the private sector was lacking. Victoria, in particular, has been very weak.

In December, however, we started to see the following excellent signs for 2026:

• Client projects getting the green light in data centres, mining, building services & automotive.
• Strength in the electronics engineering/software sector, which has been very subdued in recent times.
• More opportunities for contract engineers than we’ve had for years.

 

Observations by Sector

Engineering & Manufacturing Operations 

2025 was a difficult year in the Australian Engineering and Manufacturing recruitment markets. ‘Treading Water’ would be a good way of describing it. There weren’t mass layoffs, and we suspect that’s because companies remember how difficult it was to recruit talent as we came out of COVID. But manufacturing companies in particular faced challenges with a range of factors such as energy prices, cautious consumers, and new collective bargaining and labour hire laws.

2026 has a different feel to it, and we’ve seen an uptick in hiring. Initial enquiries indicate a demand for Draftspeople – mechanical, electrical and general. Other in-demand roles include Mechatronic Engineers, Operations Managers, Electrical Engineers and Service Engineers. Candidates also appear to have higher remuneration expectations, with many conversations suggesting that this is being driven by the cost of living.

 

Building & Mechanical Services and Data Centres

The Building and Mechanical Services sector is being reshaped by the national data centre boom. This infrastructure-heavy growth has created an urgent need for Electrical and Mechanical Engineers and VIC-based Drafters. Notably, there is a niche requirement for Security Project Engineers with specific L2/L3 and Genetec experience. To combat these shortages, forward-thinking firms are increasingly investing in graduate programs across VIC, NSW, ACT, and QLD to secure long-term talent pipelines.

 

Technology

The Australian technology landscape is currently defined by a widening “deep tech” talent gap. We are seeing a surge in demand for Embedded Software Engineers—specifically those with expertise in encryption, wireless communications, and intelligent lighting. This scarcity extends to the mission-critical sector, where there is a notable deficit of Project Managers and Engineers capable of delivering emergency services infrastructure. We’re also seeing demand for Firmware and Hardware Engineers in the water sector.

 

Resources

WA’s engineering market remains highly active and competitive, driven by sustained investment across resources, infrastructure, and major construction projects. Demand is particularly strong for E&I, Mechanical, Civil, Electrical, and Mining Engineers, with ongoing skills shortages continuing to shape hiring strategies.

Hiring demand includes a mix of permanent and contract/FIFO roles. Permanent positions typically attract salaries between $105k and $190k+, while contract and FIFO roles generally attract around $75–$115 per hour, reflecting a strong focus on immediate availability and specialist expertise.

In this market, speed and flexibility is critical. Businesses offering streamlined onboarding, clear project scope and flexible engagement models are securing candidates more quickly.