Following the RBA’s decision to maintain the cash rate at 3.6%, we break down what this means for recruitment and hiring in Australia, particularly in engineering, product design, and manufacturing.
With inflation pressures continuing and unemployment rising to 4.5% in September, these developments will influence both job seekers and employers. Here’s what you need to know to navigate the job market through 2025 and into 2026.
Why the cash rate matters
The Reserve Bank of Australia (RBA) manages monetary policy using the cash rate to balance economic growth and control inflation. By keeping the rate at 3.6%, borrowing costs, business investment, and consumer spending are influenced – all of which affect hiring, job opportunities, and workforce planning. Sectors like engineering, product design, and manufacturing are particularly sensitive to these changes.
What this means for job seekers
For candidates in engineering, manufacturing, and design, the market presents a mixed picture. Unemployment has risen, meaning increased competition, but demand for specialists remains strong – particularly in areas like Industry 4.0, sustainability, digital transformation, and clean energy.
So how can candidates stand out? The key is adaptability. Employers are looking for professionals who can combine traditional technical skills with digital tools like AI-driven modelling, digital twins, or advanced automation. Engineers and designers who can apply their expertise to sustainability-focused projects or innovative manufacturing processes will be especially sought after.
Networking is also critical. Engaging with professional associations, attending industry events, and partnering with recruiters who know your sector can open doors to the best opportunities.
What this means for employers
Employers in these sectors face a different challenge: despite a growing pool of job seekers, the right skills remain hard to find.
Retention is another pressing issue. Skilled engineers and designers are highly mobile, and with underemployment at 5.9%, many are open to moving for better conditions or more innovative projects. Employers who can offer career progression, exposure to cutting-edge technologies, and involvement in sustainability initiatives will have a clear advantage. At the same time, rising energy costs and global supply chain pressures are forcing manufacturers to do more with less – making innovative, efficiency-focused hires especially valuable.
Employers who align their workforce strategies with this recovery, by investing in digital capability, sustainability, and design innovation, will be best placed to thrive.
Looking ahead together
As we head into 2026, navigating the job market may feel like a balancing act. Fortunately, the team at RHL Recruitment is here to support both job seekers and employers. With over thirty years’ experience as a specialist technical recruitment agency based in Sydney, we know the engineering, product design, and manufacturing sectors inside out.
Whether you’re looking for your next opportunity or seeking to fill a key role in your company, get in touch at: https://rhl.com.au/
