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🇦🇺 Australia /Economy & Trade

Not moving jobs, states or starting businesses: Data says Australians are stuck

From ABC Australia · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

Analysis Documents & data Context piece
  • Data indicates Australians are less mobile and more risk-averse, with job mobility falling to a 20-year low of 7.7%.
  • Factors contributing to this trend include fears around artificial intelligence, global uncertainty, and a tightening job market.
  • The security and benefits of traditional wage jobs, coupled with high housing costs, make self-employment and job changes less attractive.

Australians are exhibiting significantly reduced mobility in the workforce, with fewer people switching jobs, starting businesses, or relocating between states. Economic indicators reveal a trend towards greater risk aversion and less dynamism compared to previous years.

I do think there's a lot of fear in the workplace at the moment.

· Kate McCreadyA business strategist, McCready explains the current climate of fear affecting the Australian workforce.

Business strategist Kate McCready attributes this phenomenon to widespread fear in the workplace, fueled by advancements in artificial intelligence, global economic uncertainty, and a more competitive job market. "People are worried about keeping those jobs, and then what happens if they can't keep those jobs … ending up in this climate where it does make it harder," she stated.

Historical data highlights this shift. In 1989, nearly one in five workers changed jobs annually. By 2005, this 'job mobility' rate had dropped to 11%. The most recent data, for the year ending February 2025, shows only 7.7% of the workforce, or about 1.1 million people, changed jobs, marking a 20-year low.

People are worried about keeping those jobs, and then what happens if they can't keep those jobs … ending up in this climate where it does make it harder.

· Kate McCreadyMcCready elaborates on the anxieties driving reduced job mobility among Australians.

Rachel Lee, a research economist at the e61 Institute, notes that the high cost of housing, with average mortgages around $700,000 over 30 years, is a significant barrier. This financial pressure discourages people from considering job or location changes. Furthermore, traditional employment has become increasingly appealing due to enhanced benefits like superannuation and paid parental leave, making wage jobs more secure and attractive than self-employment.

All of these factors point towards Australians being stuck or being held in the jobs that they currently have.

· Rachel LeeResearch economist Rachel Lee summarizes the findings on decreased workforce mobility.

This has led to a sharp decline in self-employment, which has fallen to a 20-year low. The share of self-employed Australians dropped from a peak of 20% in 2002 to just 14% today, with sole traders decreasing from 12% to under 9%. Lee suggests this is not due to a lack of desire to start businesses, but rather a growing preference for the income security offered by wage-paying jobs, despite the complexities and costs associated with starting a business that hires staff.

It can be something that is stopping people from considering or even changing jobs or changing locations.

· Rachel LeeLee discusses the financial and practical barriers preventing Australians from changing jobs or moving.
About this summary

Originally published by ABC Australia. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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