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

Kate McCready has worked for big companies and herself. She worries workers are in for trouble ahead after decades of consistent economic growth. Link copiedShareShare articleNot switching jobs. Not starting businesses. Not moving states. People are less mobile, less dynamic and more risk-averse than we used to be, a series of economic indicators shows. "I do think there's a lot of fear in the workplace at the moment," said business strategist Kate McCready. Contributing to those fears are advances in artificial intelligence (AI), the uncertain global environment and a tightening jobs market. Ms McCready has previously moved between self-employment and receiving a salary, and has just re-started her leadership coaching business after a restructure at a large health insurer made her redundant. She was happy about the shift, but aware that not everyone is able to shift jobs so seamlessly. "One of the biggest things is the freedom of time and the choice to choose how and when and why I work, who I work with." In 1989, almost one in five people in the workforce changed jobs in a single year. By 2005, the 'job mobility' rate had fallen to 11 per cent, essentially one in 10 people. The most recent data, for the year to February 2025, the data shows just over 1.1 million people changed jobs, which means job-switching fell to just 7.7 per cent, or one in 13 people. "All of these factors point towards Australians being stuck or being held in the jobs that they currently have," said Rachel Lee, research economist at the e61 Institute. The cost of housing and the risk involved in taking an average mortgage, around $700,000 with a 30-year term, are just some of the factors holding us back. Traditional employment has become more attractive and secure over time, says Rachel Lee. (ABC News: Scott Preston) Rachel Lee said the security and benefits of traditional employment have become more attractive over time. "With the expansion of things like superannuation and paid parental leave, the benefits of being a wage employee have increased," she said. And it has changed the employment market. Self-employment has fallen sharply to a 20-year low, according to e61 Institute research. This is a fundamental shift in how Australians work. The share of Australians who are self-employed fell from a 2002 peak of 20 per cent to just 14 per cent of employment today. Sole traders dropped from 12 per cent in 2002 to just under 9 per cent now. It is not a lack of people wanting to start new businesses that employ staff, Rachel Lee said, but workers increasingly choosing wage-paying jobs for greater income security. "Fewer people are running small businesses, as wage jobs become more attractive and predictable, while the costs and complexities of setting up a business that hires and manages employees have risen," she said. Economist Dimitri Burshtein, who works at Eminence Advisory, said we were "weighing down" younger generations. The biggest asset most young people have is their time, skills and the ability to sell them. Dimitri Burshtein says red tape makes it harder for people to start small businesses. (ABC News: Daniel Irvine) But he said high income tax rates and regulations that impede young people from starting businesses hinder their ability to get ahead. Many economists view regulation derisively and call it 'red tape' for the extra burden it places on business to complete and comply with. Mr Burshtein is not a fan (saying "it's like a wet burlap sack") but for another reason. He suggests new regulations place a disproportionate burden on businesses that haven't had to face the rules before, and provide a boost to companies already in the market. "It just stifles innovation, it stifles movement. What it's designed for is to de-risk systems. And what that means is that we're using regulation to protect what we have, but to make it really hard to build things new." Another measure of decreased mobility is this: we are not moving interstate as much as we used to. Interstate moves, as a percentage of our population, are falling (ABS, Cameron Kusher) Property market expert Cameron Kusher said it was a big commitment. "There is just not enough enticement to encourage people to cross the borders. People are still moving, but they are much less likely to move to another state instead choosing to move within the state they currently live in," he said. Cameron Kusher says it is not just the high cost of housing that is a barrier to interstate moves, but also the actual cost of moving your belongings. (ABC News: Adam Griffiths) The spiralling cost of property — and transaction costs like stamp duty — make it harder to shift. "High housing costs, especially in a rising interest rate environment, is a big reason why people don't change jobs, don't start business and don't move to another state," Cameron Kusher added. The federal budget has taken huge swings at some of the settings that have fuelled the hous

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

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

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