The Australian Department of Employment and Workplace Relations released its first national report on the impact of AI on the labor market. The agency found no signs of widespread layoffs due to technology but noted a slower growth in employment in sectors more susceptible to automation.

According to the report, from November 2022 to February 2026, employment in the top fifth of professions most exposed to generative AI grew by 5.6%, while in the least affected group, the growth was 9.5%. The authors described this as an early and moderate signal rather than evidence of significant job losses.

Employment in AI-sensitive professions grew more slowly than in those with minimal exposure. Source: AI and employment in Australia.

The department's model indicates that for professions with AI exposure one standard deviation above the average, employment by February 2026 was approximately 2% lower than expected if trends had continued prior to the emergence of ChatGPT.

However, the results are sensitive to methodology. The negative correlation between AI exposure and employment growth loses statistical significance when using two alternative exposure metrics or when excluding the COVID-19 period from part of the model.

Who is at Risk?

The report identified routine cognitive jobs as the most vulnerable to automation. These include office workers, data entry operators, administrators, accountants, advertising and marketing specialists, and programmers.

In contrast, jobs least exposed to AI are those involving manual labor and caregiving, such as caregivers, electricians, truck drivers, cleaners, carpenters, plumbers, and gardeners.

Source: AI and employment in Australia.

The Guardian highlighted the gender and educational gap. In the most vulnerable professions, men make up 43.7% of the workforce, while in the least vulnerable group, they account for 69.5%. The proportion of workers with a bachelor's degree or higher in the high-exposure group reaches 43.7%, compared to 14.9% among the least exposed professions.

The authors clarified that the risk is linked to these groups being more frequently employed in areas where tasks are easier to automate using generative models.

Source: AI and employment in Australia.

The report noted a shift in the conventional view of automation. Previously, the primary risk was seen as the replacement of manual and routine labor. However, generative AI now significantly impacts certain office and intellectual tasks—such as writing, data processing, document preparation, client communications, and programming.

Nonetheless, the situation is not simply about displacing "white-collar" workers. Some professions with high AI exposure continue to grow. For instance, employment in the "Software and Application Developers" category in Australia reached 199,000 by February 2026—a 25% increase from November 2022.

Source: AI and employment in Australia.

The authors also found no deterioration in the situation for graduates. The report states that the labor market for them remains resilient: unemployment among young people with higher education is low, and the proportion of graduates working in positions typically requiring a degree has increased. This sets Australia apart from some studies in the U.S., where young professionals in high AI-exposure jobs are seen as a potential first group at risk.

No Mass Disruption Yet

According to the report, the unemployment rate in Australia was 4.2% in February 2026—lower than any figure in the decade leading up to COVID-19. The employment-to-population ratio reached 64%, above the pre-pandemic average. The authors also did not observe an accelerated redistribution of workers among professions.

More noticeable signals emerged in the group of highly exposed professions. There, employment, hours worked, and job vacancies grew more slowly. The unemployment rate in this category increased more than in other groups. However, the report emphasizes that many routine cognitive jobs had already been declining as a share of employment even before the emergence of ChatGPT. Therefore, the current weakness may reflect not only AI but also prior structural trends, post-pandemic labor market adjustments, and macroeconomic factors.

Source: AI and employment in Australia.

The report presents a wide range of forecasts regarding the impact of artificial intelligence on the labor market. As one extreme estimate, the authors cite Anthropic CEO Dario Amodei, who previously stated that AI could eliminate up to half of entry-level jobs among "white-collar" workers and raise unemployment to 10-20% within one to five years.

The Guardian noted that the report was released amid preparations for new steps by Prime Minister Anthony Albanese's government to regulate AI. According to the publication, Australian authorities are expected to present an updated approach to managing the technology soon, addressing issues of safety, economics, copyright, and trust in systems.

In July, Minister of Employment and Workplace Relations Amanda Rishworth stated that the government intends to use artificial intelligence to create "good jobs, not to threaten them."

"We will continue to ensure that Australians receive support during these changes—through the skills, training, and career pathways necessary to adapt and benefit," she emphasized.

The Department of Employment and Workplace Relations plans to continue monitoring the labor market quarterly. However, the next update may not come until late 2026 due to the statistical agency's transition to a new classification of professions.

It is worth noting that in February, Block laid off over 4,000 employees, reducing its workforce from more than 10,000 to fewer than 6,000. Fintech company CEO Jack Dorsey stated that AI tools are changing the principles of organization and management. However, he later acknowledged that the firm had overhired during the pandemic.

In the same month, OpenAI CEO Sam Altman accused large companies of using artificial intelligence as a pretext for layoffs. He believes that over time, the impact of automation on the labor market will only increase.

In May, the Intermediate People's Court in Hangzhou ruled that companies cannot dismiss employees solely due to their replacement by AI.