Australians Choosing Stability Over Risk As Job Switching And Relocation Slump
Synopsis
New economic indicators highlighted by ABC News suggest Australians are becoming more cautious about changing jobs, starting businesses and relocating amid rising housing costs and economic uncertainty.
Australians are increasingly choosing stability over risk, with fewer people changing jobs, starting businesses or moving interstate, according to a detailed report by Australian Broadcasting Corporation. A range of economic indicators suggests workers and households are becoming more cautious as housing affordability pressures, artificial intelligence disruption and global uncertainty reshape decisions around employment and mobility.
Key highlights
- Australians are changing jobs less frequently than in previous decades
- Self-employment has fallen to a 20-year low
- Rising housing costs and economic uncertainty are driving caution
- Experts say AI and global instability are increasing workplace anxiety
- Interstate migration has slowed as relocation becomes more expensive
- Economists warn regulation and taxes may be discouraging entrepreneurship
Australians Are Switching Jobs Less Often
New labour market data shows job mobility in Australia has fallen sharply over the past three decades.
In 1989:
- Nearly one in five workers changed jobs annually
By February 2025:
- Only 7.7% of workers switched jobs
- Roughly one in 13 Australians changed employment
Research economist Rachel Lee said the numbers point to Australians becoming increasingly “stuck” in existing roles.
According to experts cited by ABC, workers are becoming more reluctant to take career risks because of:
- High mortgage burdens
- Economic uncertainty
- Tightening labour market conditions
- Concerns around AI-driven disruption
Housing Costs Are Limiting Mobility
Economists say Australia’s expensive housing market is playing a major role in reducing mobility.
The average mortgage burden and rising property costs are making Australians less willing to:
- Change careers
- Relocate interstate
- Start businesses
- Leave secure salaried work
Property analyst Cameron Kusher said high housing costs and transaction expenses such as stamp duty are discouraging movement.
“People are largely choosing safety and security in the current economic environment,” he told ABC.
Wage Employment Becoming More Attractive
Research from the e61 Institute found self-employment has fallen to its lowest level in two decades.
The share of Australians who are self-employed has declined from 20% in 2002 to 14% today.
Sole trader participation has also dropped considerably.
Lee said traditional wage-paying jobs now offer stronger incentives through:
- Superannuation
- Paid parental leave
- Stable income
- Workplace protections
Skills once associated with entrepreneurship, such as problem-solving and decision-making, are now increasingly rewarded inside salaried corporate roles.
AI Anxiety And Economic Uncertainty Rising
Business strategist Kate McCready told ABC there is growing fear among workers about the future of employment.
She pointed to artificial intelligence, global geopolitical instability, economic volatility and corporate restructures as factors contributing to workplace anxiety.
McCready recently restarted her own coaching business after losing her previous corporate role during a restructure.
She said many workers are hesitant to leave secure employment despite wanting more flexibility and autonomy.
Economists Warn Regulation Is Hurting Dynamism
Economist Dimitri Burshtein argued that rising regulation and tax burdens are making it harder for younger Australians to innovate and build wealth.
He said excessive “red tape” can:
- Slow business creation
- Protect established incumbents
- Reduce economic dynamism
- Discourage entrepreneurial risk-taking
Burshtein described regulation as a “wet burlap sack” weighing down innovation and mobility.
Interstate Relocation Also Slowing
Australians are also moving interstate less frequently than in previous years.
Instead, more people are choosing to relocate within their existing states rather than making larger geographic moves.
Experts say rising relocation costs, stamp duties and financial uncertainty are reducing incentives to move.
Government Reforms Aim To Ease Pressure
The federal government has introduced several policy measures aimed at cooling the housing market and improving economic flexibility.
Recent reforms include:
- Proposed changes to negative gearing
- Capital gains tax adjustments
- Lower compliance costs for businesses
- Simplified financial record-keeping rules
Analysts say the effectiveness of those changes may take years to become visible.
Why It Matters
Economists warn that declining mobility can weaken:
- Productivity growth
- Innovation
- Entrepreneurship
- Labour market flexibility
A more risk-averse workforce may also leave Australia less adaptable during periods of rapid technological and economic change.
FAQs
Q1: Why are Australians changing jobs less often?
Experts say high housing costs, economic uncertainty and job security concerns are making workers more cautious.
Q2: How has self-employment changed in Australia?
Self-employment has fallen to a 20-year low, with more Australians preferring stable wage-paying jobs.
Q3: What role does housing play?
Large mortgages, expensive property prices and stamp duty costs are discouraging career moves and relocation.
Q4: How is AI affecting workers?
Many workers fear AI could disrupt jobs and increase employment uncertainty, contributing to risk-averse behaviour.
Q5: Are Australians moving interstate less?
Yes. Data suggests interstate migration has slowed as relocation becomes more financially difficult.
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I write about markets, money, and the macro forces that move them. Passionate about turning complex economic trends into sharp, easy-to-understand stories. Off the clock, it’s hip hop, rock, reggae -- and a mix of cricket and basketball.
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