In brief: Outplacement is structured career support for people who have been made redundant. Restructuring is a long-standing cause of redundancy, and current Australian evidence does not show AI as the primary cause. International research on job search assistance points to benefits for people finding new work, and support must fit the individual.
Image: “Crossroads” by Carsten Tolkmit (Laenulfean), CC BY-SA 2.0, via Wikimedia Commons. Resized from the original.
Redundancy is an unfortunate part of the Australian labour market.
The Australian Bureau of Statistics (ABS, 2026) estimates that about 257,900 people were retrenched in the year to February 2026, an annual retrenchment rate of 1.8%. Outplacement, which is structured support such as career coaching, résumé and linkedin profile preparation plus interview training, is one way employers can support seperating employees.
Why redundancies happen
The Fair Work Ombudsman (n.d.) lists the familiar causes: new technology, lower sales or production, closure, relocation, and restructuring, including through a merger or takeover. Restructuring is a long standing factor. Marchant, Critchley and Littler (1997) attributed much of the rise in Australian managers changing jobs, from about 10% in 1980 to about 30% by the mid-1990s, to organisational restructuring. Jobs and Skills Australia (2026) reports that the displacement rate fell from around 6% in 2015 to 4% in 2025, but that redundancy-related displacement has risen in professional and service industries, increasingly in metropolitan Sydney and Melbourne, and that skilled professionals are not immune.
Is AI now the main driver?
Current Australian evidence says not yet. A Department of Employment and Workplace Relations (2026) report found no evidence to date of broad AI-driven labour-market upheaval, although occupations more exposed to generative AI have grown more slowly. With the level of reporting in the media regarding AI impacts it certainly feels imminent.
Reported employment growth to February 2026 was 5.6% for the most exposed jobs against 9.5% for the least exposed (Williams, 2026). Within the technology sector, an analyst quoted by Information Age attributed all of the roughly 4,450 Australian tech layoffs by mid-March 2026 to AI (Braue, 2026). So it appears that AI is not as disruptive as it is perceived, at least perhaps not right now.
Does it help people find work?
Recent international research on job search assistance for displaced workers points to benefits.
A review of more than 200 evaluations of active labour market programs found that job search assistance has relatively large short term effects on average, although these fade over time compared with training programs (Card, Kluve and Weber, 2018). A meta analysis of 378 samples found that the intensity and quality of job searching were positively related to interviews, job offers and employment status (van Hooft et al., 2021).
Results are not uniform though: a Swedish study of collectively funded counselling for displaced blue-collar workers found no detectable effect on unemployment duration or income, but a positive effect on how long the next job lasted (Andersson, 2018). So it seems the level and types of support are important to get right when selecting the right outplacement vendor.
Support must fit the person
Australian research cautions that outplacement is not automatically helpful. Gribble and Miller (2009) found that retrenchees’ experiences were not always positive and recommended support tailored to a personal assessment. Parris and Vickers (2009), studying Australian executives, concluded that employers should choose services carefully and plan how they fit into the redundancy process. Here are questions you can ask potential outplacement vendors when searching https://www.linqhr.com/choosing-an-hr-service-provider-in-australia
A fairer process for those who stay
Remaining employees are also important to consider. International evidence from 37 samples and 11,256 people shows that perceived fairness is positively related to affective commitment among both survivors and those who left, with procedural fairness mattering more for survivors (van Dierendonck and Jacobs, 2012). Often companies can go through multiple restructures and cuts, each having an impact on remaining employees.
Alongside legal obligations
Outplacement does not replace the Australian Fair Work Act requirements. Minimum notice ranges from one to four weeks, with an extra week for employees over 45 with at least two years’ service, and redundancy pay scales with continuous service (Fair Work Ombudsman, 2024). A redundancy is genuine only if the job is no longer needed and required consultation was followed (Fair Work Ombudsman, n.d.).
Choosing a provider
Ask providers how they measure outcomes and how they tailor support by seniority and industry.
Linq HR operates Workforce Directory , Australia’s HR services marketplace, assisting employers find workforce vendors. Ph 1300 234 566.
Further reading:Navigating AI’s Impact: Guidance for Entry Level Employees and Graduates in Australia.
References
Andersson, J. (2018) ‘Early counselling of displaced workers: effects of collectively funded job search assistance’, IFAU Working Paper 2018:22. Institute for Evaluation of Labour Market and Education Policy (IFAU). Available at: https://www.ifau.se/en/Research/Publications/Working-papers/2018/early-counselling-of-displaced-workers---effects-of-collectively-funded-job-search-assistance (Accessed: 8 November 2026).
Australian Bureau of Statistics (2026) Job mobility, February 2026. Available at: https://www.abs.gov.au/statistics/labour/jobs/job-mobility/feb-2026 (Accessed: 8 November 2026).
Braue, D. (2026) ‘AI blamed for every Australian tech sacking this year’, Information Age, 17 March. Available at: https://ia.acs.org.au/article/2026/ai-blamed-for-every-australian-tech-sacking-this-year.html (Accessed: 8 November 2026).
Card, D., Kluve, J. and Weber, A. (2018) ‘What works? A meta analysis of recent active labor market program evaluations’, Journal of the European Economic Association, 16(3), pp. 894–931. Available at: https://doi.org/10.1093/jeea/jvx028 (Accessed: 8 November 2026).
Department of Employment and Workplace Relations (2026) The AI and employment in Australia report, 8 July. Available at: https://www.dewr.gov.au/workplace-relations/announcements/ai-and-employment-australia-report (Accessed: 8 November 2026).
Fackler, D., Stegmaier, J. and Upward, R. (2023) ‘Safety net or helping hand? The effect of job search assistance and compensation on displaced workers’, IWH Discussion Papers, No. 18/2023. Halle: Leibniz Institute for Economic Research. Available at: https://iab.de/en/publications/publication/?id=1410534 (Accessed: 8 November 2026).
Fair Work Ombudsman (2024) Notice of termination and redundancy pay. Available at: https://www.fairwork.gov.au/sites/default/files/migration/723/Notice-of-termination-and-redundancy-pay.pdf (Accessed: 8 November 2026).
Fair Work Ombudsman (n.d.) Redundancy. Available at: https://www.fairwork.gov.au/ending-employment/redundancy (Accessed: 8 November 2026).
Gribble, L.C. and Miller, P. (2009) ‘Employees in outplacement services, do they really get the help they need?’, Australian Journal of Career Development, 18(3), pp. 18–28. Available at: https://researchportal.scu.edu.au/esploro/outputs/journalArticle/Employees-in-outplacement-services-do-they/991012821183202368 (Accessed: 8 November 2026).
Jobs and Skills Australia (2026) Fewer workers displaced, but job loss is shifting across Australia [media release on Recent trends for displaced workers in Australia], 29 September. Available at: https://www.jobsandskills.gov.au/news/fewer-workers-displaced-job-loss-shifting-across-australia (Accessed: 8 November 2026).
Marchant, T., Critchley, B. and Littler, C. (1997) ‘Managers on the move’, HR Monthly, October. Available at: https://research.usq.edu.au/download/9ee9e1252c3cf69ad235c1aa808a5a4f3ae574e703f374e467fe09d38cdb9c76/423595/Marchant_Critchley_Littler_HRM_OCT1997_PV.pdf (Accessed: 8 November 2026).
Parris, M.A. and Vickers, M.H. (2009) ‘Provision of outplacement services during redundancy: lessons from Australian executives’, in Preziosi, R.C. (ed.) The 2009 Pfeiffer Annual: Management Development. San Francisco: Pfeiffer, pp. 155–168. Available at: https://researchers.westernsydney.edu.au/en/publications/provision-of-outplacement-services-during-redundancy-lessons-from/ (Accessed: 8 November 2026).
van Dierendonck, D. and Jacobs, G. (2012) ‘Survivors and victims, a meta-analytical review of fairness and organizational commitment after downsizing’, British Journal of Management, 23(1), pp. 96–109. Available at: https://doi.org/10.1111/j.1467-8551.2010.00724.x (Accessed: 8 November 2026).
van Hooft, E.A.J., Kammeyer-Mueller, J.D., Wanberg, C.R., Kanfer, R. and Basbug, G. (2021) ‘Job search and employment success: a quantitative review and future research agenda’, Journal of Applied Psychology, 106(5), pp. 674–713. Available at: https://doi.org/10.1037/apl0000675 (Accessed: 8 November 2026).
Williams, T. (2026) ‘AI not causing mass layoffs in Australia, says govt’, Information Age, 9 July. Available at: https://ia.acs.org.au/article/2026/ai-not-causing-mass-layoffs-in-australia-says-govt.html (Accessed: 8 November 2026).
