**The big picture:** The Westpac-McDermott Miller Employment Confidence Index rose by 3.2 points to 86.3 in September 2026, only partially reversing the sharp fall observed in the previous quarter. **Why it matters:** This weak rebound suggests underlying caution in the labor market, impacting hiring strategies and talent retention efforts for businesses and staffing firms. **Between the lines:** - The index increased by 3.2 points, reaching 86.3. - This gain represents only a partial recovery from a sharp decline in the prior quarter. **Staffing & HR impact:** Staffing firms may continue to experience client hesitancy in hiring, potentially impacting gross margins. HR departments should prepare for a conservative talent acquisition landscape. **The bottom line:** A fragile recovery in employment confidence points to ongoing economic uncertainty.