Inflation dip welcomed, but employers remain cautious, says JobAdder CEO

By Newsdesk

May 28 2026
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As the Australian Bureau of Statistics (ABS) released its latest Consumer Price Index (CPI) figures today, revealing a dip in inflation, industry leaders are cautiously optimistic. However, this change is not expected to immediately alter employer sentiment, according to Martin Herbst, CEO of recruitment software company JobAdder.

Inflation dip welcomed, but employers remain cautious, says JobAdder CEO

Herbst commented, "A dip in inflation is a step in the right direction, but it will not shift employer sentiment overnight. Until the economic picture clears and the trimmed mean comes down consistently, businesses will keep hedging with flexibility over permanent headcount." His remarks highlight the ongoing uncertainty faced by employers, who are hesitant to make permanent hiring decisions until they see sustained economic stability.

The latest data from JobAdder underscores this cautious approach. "Our data shows job creation is trending down, and I expect more of the same through the next quarter at least. One read will not change that. Employers are saying 'not yet' or 'not permanently' until there is more stability," Herbst explained. This sentiment reflects a broader trend in the job market, where temporary and flexible roles are preferred over permanent positions.

The Job Market Conditions Index (JMCI), a key indicator from JobAdder, currently sits at 48.1, signalling a market that continues to favour employers. This index measures the balance of power between jobseekers and employers, with a score below 50 indicating a market advantageous to employers. Herbst noted, "JobAdder's Job Market Conditions Index sits at 48.1, reflecting a market still tilted toward employers."

For jobseekers navigating this challenging landscape, Herbst offered strategic advice. "Jobseekers should prioritise relationships with recruiters over volume applications. Recruiters say they’re often placing candidates they already know faster than those who apply cold," he advised. This insight suggests that networking and maintaining strong connections with recruitment professionals could prove more beneficial than submitting numerous applications without personal engagement.

The broader economic context further complicates the employment landscape. While the dip in inflation is a positive sign, it is just one piece of a complex puzzle. The Reserve Bank of Australia has been closely monitoring inflation trends as it considers adjustments to interest rates, which directly impact business investment and consumer spending.

In recent months, businesses across various sectors have been grappling with rising operational costs and supply chain disruptions. These challenges have forced many companies to adopt a cautious approach to hiring, opting for temporary solutions to manage workforce needs without committing to long-term expenses.

Herbst's insights into the current job market dynamics are echoed by other industry experts who have observed similar trends. The preference for flexible staffing solutions is seen as a way for businesses to remain agile in the face of economic uncertainties. Until there is more clarity on the economic front, particularly regarding inflation and interest rates, this cautious approach is likely to persist.

The current scenario also presents an opportunity for jobseekers to reassess their strategies. Building relationships with recruiters, as Herbst suggests, can provide a competitive edge in a market where employers hold the upper hand. By focusing on quality over quantity in their job search efforts, candidates may improve their chances of securing desirable positions.

As the situation evolves, both employers and jobseekers will need to remain adaptable. The interplay between inflation trends, economic policies, and market conditions will continue to shape the employment landscape in the coming months. For now, the dip in inflation offers a glimmer of hope, but the road to stability remains uncertain.

In summary, while the latest CPI figures bring a positive development, the path to economic recovery and job market stability will require sustained improvements and strategic adjustments from all stakeholders involved.

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