Staffing constraints and shifting workforce priorities are challenging the federal government's efforts to reduce its reliance on contractors, with agency managers forced to pay higher rates for hourly contractors to meet project deadlines.
The trend was detailed in the Canberra recruitment firm HorizonOne's State of the Canberra Recruitment Market 2026 report, which highlighted the continuing demand for specialised talent.
This is despite the ACT's unemployment rate experiencing the steepest proportional increase in the nation, from 3 per cent at the end of 2024 to 4.4 per cent by May 2026.