Australian workers are staying in their current roles and avoiding new business ventures at rates not seen in decades.
This shift suggests a growing trend of risk aversion within the national economy. A lack of mobility in the labor market can stifle wage growth and limit the entrepreneurial innovation that typically drives economic expansion.
Recent data for the year ending February 2025 shows the job-switching rate fell to 7.7% [3]. This means approximately one in 13 people changed their employment during that period [3]. In total, just over 1.1 million Australians switched jobs in that timeframe [2].
This represents a significant decline from historical norms. In 1989, almost one in five people in the Australian workforce changed jobs within a single year [1].
The trend extends beyond corporate employment into the startup sector. Self-employment has fallen to a 20-year low [4].
Economic indicators suggest that Australians are becoming more risk-averse and less mobile. This behavior manifests as a reduction in both the frequency of job changes and the formation of new businesses [5].
“Job-switching rate fell to 7.7% (about one in 13 people) in the year to February 2025.”
The decline in labor mobility and entrepreneurship indicates a cautious psychological shift among the Australian workforce. When workers stop switching jobs and entrepreneurs stop launching businesses, it often signals a lack of confidence in the economic climate or a fear of financial instability. This stagnation can lead to a less dynamic economy where productivity gains are slower to materialize.
