Why Aussie workers are quitting in 2026

New research from people2people Recruitment shows that limited career opportunities have emerged as the leading cause of staff turnover in Australia in 2026.

According to people2people Recruitment’s latest workforce research, jobseekers and employers alike rank career progression as the top reason people quit, with data suggesting employees are increasingly leaving because they are unable to see a clear path forward.

In fact, 37 per cent of jobseekers and 42 per cent of employers cite limited career opportunities as the top reason employees quit.

The head of HR at people2people Recruitment, Suhini Wijayasinghe, said: “Career development has become the main pressure point. When both employers and employees point to limited career opportunities as the number one reason people leave, that tells us progression pathways are no longer a nice-to-have. They are central to retention.”

A surprisingly less common reason for people leaving their jobs is an uncompetitive salary. Twenty-six per cent of employers say that salary is a key reason for people leaving their job, while only 15 per cent of jobseekers say the same.

On a similar scale, 32 per cent of employers cite misaligned job expectations as a driver of turnover, compared with just 8 per cent of jobseekers.

Wijayasinghe said: “Pay matters. But if employees don’t see growth, don’t feel they are learning, or realise the role they accepted is not what was promised, retention becomes fragile very quickly.”

Within the research, the differences in how turnover plays out across the country are clearly depicted.

Victoria and South Australia held the strongest focus around career progression as the prominent reason for leaving, while Queensland and Western Australia cited culture and work/life balance to be a more substantial reason.

NSW stands apart, with turnover driven by a wider range of problems, including a lack of training, salary, and work/life balance.

Wijayasinghe noted that in NSW, there isn’t one single retention issue to fix, but rather a combination of factors.

“The organisations that will hold onto talent best in 2026 will be the ones that invest in development, build manager capability, and make sure the employee experience matches the promises made during hiring,” Wijayasinghe said.

To effectively compete for talent in 2026, research clearly shows that businesses must prioritise retention as heavily as recruitment. Providing clear career progression, transparent communication, and dedicated professional development has become the new currency for keeping top performers.

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