The future of work in Australia is a complex and multifaceted issue, and the latest report from Deloitte Access Economics sheds light on a critical aspect: the impact of artificial intelligence (AI) on employment. While the narrative around AI often revolves around job losses, this report reveals a different story, one that highlights the evolving nature of the job market and the potential for augmentation rather than automation.
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, are not experiencing widespread job losses, contrary to popular belief. Instead, employment in these sectors is still rising, indicating that AI is not a replacement for human workers but rather a tool that enhances their capabilities.
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 challenges the notion that AI will lead to mass unemployment. Instead, it suggests that AI is being integrated into the workforce in a way that complements human skills, potentially improving productivity and efficiency.
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% in the year to April 2026, down from an average of 1.9% over the previous three years. Unemployment has risen by 0.4 percentage points since December 2025, indicating a softening job market.
This slowdown is attributed to various factors, including three interest rate hikes and the economic impacts of the Middle East war. As economic uncertainty rises, businesses are becoming more cautious, which is expected to temper hiring decisions and further constrain employment growth.
The Impact of AI on Hiring
The report also addresses the recent job cuts in the technology sector, often attributed to AI advancements. While widespread job losses have not occurred, AI is indeed slowing the number of hires in disrupted sectors. Sarah Rogers, the workforce strategy lead partner at Deloitte, notes that AI-disrupted occupations are concentrated in white-collar, knowledge-intensive industries, but the tasks within these roles often rely less on judgment, empathy, and people skills.
The forecast for these AI-disrupted occupations is a slowdown from an annual average of 1.9% over the past five years to 1.2% over the next five years. This suggests that while AI is transforming the job market, it is not necessarily leading to a reduction in the number of jobs but rather a shift in the nature of work.
Personal Perspective
In my opinion, this report highlights the importance of understanding the nuanced relationship between AI and employment. The idea that AI will replace humans entirely is a misconception. Instead, AI is becoming an integral part of the workforce, augmenting human capabilities and creating new opportunities. However, this transformation also brings challenges, such as the need for reskilling and adapting to a changing job market.
As AI continues to evolve, it is crucial to recognize its potential for both augmentation and automation. By embracing this dual nature, we can navigate the future of work more effectively, ensuring that the benefits of AI are shared across the workforce while mitigating potential risks.
