In a revealing snapshot of Australia’s current employment landscape, new data from the Australian Bureau of Statistics (ABS) shows a decline in job mobility for the second consecutive year. The report highlights that just under 8 percent of employed Australians—approximately 1.1 million workers—changed jobs over the past year. This comes amid a rise in the annual retrenchment rate to 1.9 percent and a total of 2.2 million people leaving or losing their jobs for various reasons.
These figures have sparked concern among social services advocates, who describe the situation as “deeply concerning” and are calling for significant changes in the employment sector. Sean Crick, head of statistics at the ABS, noted a “small decrease” in job mobility to 7.7 percent, down from 8 percent last year and 9.6 percent in 2023. “This follows a rise in job mobility over the COVID period, where the job mobility rate increased to 9.6 percent in February 2023,” Crick explained.
Understanding the Decline in Job Mobility
The ABS data indicates that of the 1.1 million Australians who changed jobs in the year leading up to February 2025, nearly two-thirds remained within the same occupation. An ABS spokesperson highlighted historical trends, noting that job mobility spiked to nearly 20 percent leading up to the recession of the early 1990s before declining to around 12 percent during the recession. Since then, it has gradually decreased to below 8 percent.
According to the spokesperson, “Job mobility, underemployment, and potential workers have declined a bit over the last few years. Like unemployment, potential workers and underemployment tend to follow the business cycle, so have had periods of increasing and decreasing.”
‘Potential Workers’ and Employment Barriers
The ABS report also sheds light on the 1.7 million Australians classified as “potential workers”—those not currently employed but wanting to work. Of these, more than 1 million were ready to start work within the week prior to being surveyed, while another 311,300 were available to start within four weeks. However, 596,100 potential workers were available but did not actively look for work, citing reasons such as education commitments and childcare needs.
Cassandra Goldie, CEO of the Australian Council of Social Services, pointed out a “clear mismatch” in the labor market. “There is a steady decline in entry-level jobs making it harder for people to transition into paid employment, especially those on income support,” she said. “People are struggling to look for work while surviving on woefully low JobSeeker payments that trap them into poverty.”
Barriers to Employment and Underemployment Challenges
Many jobseekers report feeling discouraged in their job search due to qualifications, age, and health conditions. This aligns with findings from the 2024 Faces of Unemployment report by ACOSS, which highlighted that individuals with disabilities or health concerns are often older, increasing their risk of long-term unemployment.
Dr. Goldie emphasized the persistent barriers faced by groups such as those with partial work capacity, older individuals, and First Nations people. “The decline in job mobility combined with high numbers of job losses is deeply concerning. For people on low incomes or facing disadvantage in the labor market, it often means they are being shut out completely,” she stated.
“We hear from people every day who want to work but are stuck in a system that sets them up to fail.” — Cassandra Goldie
Underemployment and the Quest for More Hours
Alongside unemployment, the ABS report highlights the issue of underemployment, which affects those working fewer hours than desired. As of February 2025, there were 818,900 part-time workers seeking more hours, with nearly half preferring full-time work. Of the 14.7 million employed Australians in May 2025, 1.3 million were available and preferred to work more hours.
“Of the total 1.5 million underemployed people, 321,100 had had their hours reduced.” — ABS
Implications and the Path Forward
The current employment data underscores the need for a comprehensive approach to address both unemployment and underemployment in Australia. Dr. Goldie called for the government to “move beyond punitive compliance” and focus on delivering “real solutions” for employment. She advocates for an overhaul of employment services, investment in tailored employment programs, and an increase in income support payments to sustainable levels.
“We need to end harmful payment suspensions and cancellations, which damage people’s capacity to find employment,” she urged. As the nation grapples with these employment challenges, the focus will likely remain on creating a more inclusive and supportive job market that can accommodate the diverse needs of its workforce.
