Artificial intelligence (AI) is not causing broad disruption to Australia’s labour market, a first of its kind report reveals.
The AI and Employment in Australia report is a data-driven, up to date, analysis of how artificial intelligence is impacting the workplace.
The report’s evidence does not show that AI is causing large scale job loss in Australia.
Our labour market remains strong by historical standards. As at May 2026, unemployment is 4.4 per cent and participation remains near record highs.
The AI and Employment in Australia report from the Department of Employment and Workplace Relations examines how occupations exposed to AI have changed since generative tools began to be used in late 2022.
The report, which uses data up to February 2026, found no significant impact on overall employment growth and no major shifts in the types of jobs across occupations.
The report found jobs growth for young people and graduates, often seen as most at risk from automation, remained resilient post generative AI.
Jobs for people aged 20 to 24 have actually grown slightly faster than for those aged 25 and over since the introduction of Chat GPT in late 2022.
While some global technology job cuts have been linked to AI, the Australian experience has been different.
For instance, employment in software development roles has increased by 25% since November 2022.
However, jobs more exposed to AI, such as clerical and administrative roles, are growing more slowly than those less exposed.
Since November 2022, employment in the occupations most exposed to AI has grown by 5.6%, compared with 9.5% in the least exposed.
This suggests a gradual shift and may reflect longer term changes already underway in the labour market.
The AI and Employment in Australia report can be accessed here – AI and employment in Australia – Department of Employment and Workplace Relations, Australian Government
Quotes attributable to Minister for Employment and Workplace Relations, Amanda Rishworth:
“The AI and Employment in Australia report reveals that artificial intelligence is not currently causing upheaval in the labour market.
“AI is changing how we work, but it also has real potential to lift productivity, build skills and create new opportunities.
“Artificial intelligence could yet reshape the jobs market in Australia, but this report shows labour market conditions remain strong by historical standards, youth outcomes have mostly held up, and occupational reshuffling has not accelerated.
“Our Labor Government is determined to ensure AI is harnessed to create good jobs, not threaten them.
“We will continue to make sure Australians are supported through this change, with the skills, training and pathways needed to adapt and benefit.”
