The future of employment in Australia is a complex and multifaceted issue, and the latest report from Deloitte Access Economics sheds light on a critical aspect of this evolving landscape: the impact of artificial intelligence (AI) on job prospects. While the narrative surrounding AI often revolves around job losses, this report reveals a more nuanced story, one that challenges common assumptions and highlights the importance of understanding the broader economic context.
The AI-Disrupted Jobs
The report introduces the concept of 'AI-disrupted jobs', defined as roles that do not require human judgment, empathy, or interpersonal skills. These jobs, according to Deloitte's study, are not experiencing widespread job losses, contrary to popular belief. Instead, employment in these sectors is still rising, indicating that AI is not a primary driver of job displacement.
David Rumbens, a partner at Deloitte Access Economics, emphasizes this point: "Limited evidence of widespread job losses suggests that AI is currently playing more of an augmentative role in the Australian labour market, with Australians less likely to use AI primarily for automation."
This finding is particularly intriguing, as it challenges the notion that AI will inevitably lead to mass unemployment. Instead, it suggests that AI is being integrated into the workforce in a way that complements human skills, rather than replacing them.
The Broader Economic Context
However, the report also highlights a grim reality: it is becoming harder for Australians to find new jobs. The annual employment growth has slowed to 0.9 per cent, down from an average of 1.9 per cent over the previous three years. Unemployment has risen by 0.4 percentage points since December 2025, and economic uncertainty is on the rise.
Rumbens explains, "With economic uncertainty rising, businesses are expected to behave more cautiously, tempering hiring decisions and constraining employment growth over the coming year."
The report attributes this slowdown to three interest rate hikes and the economic impacts of the Middle East war. These factors have contributed to a softening of the market, making it more challenging for job seekers.
The Impact of AI on Hiring
The report also delves into the impact of AI on hiring practices. Sarah Rogers, the workforce strategy lead partner at Deloitte, notes that AI-disrupted occupations are concentrated in white-collar, knowledge-intensive industries. However, the tasks within these roles often rely less on judgment, empathy, and people skills.
Rogers adds, "These AI-disrupted occupations are forecast to slow from an annual average of 1.9 per cent over the past five years to 1.2 per cent over the next five years."
This slowdown in hiring is not due to widespread job losses but rather a result of AI's influence on the hiring process. As AI becomes more prevalent, businesses may be more selective in their hiring, focusing on specific skills and capabilities that AI cannot easily replicate.
Conclusion
In conclusion, the Deloitte report presents a nuanced view of the relationship between AI and employment in Australia. While AI is undoubtedly transforming the workforce, it is not leading to widespread job losses. Instead, it is creating a more selective hiring environment, where businesses are focusing on specific skills and capabilities.
This raises a deeper question: How can we ensure that the workforce is equipped with the skills needed to thrive in an AI-augmented economy? The answer lies in a comprehensive approach that combines education, training, and policy interventions to prepare Australians for the challenges and opportunities of the future job market.
