The Australian job market is experiencing a notable shift, with job mobility falling for the first time in three years, returning to pre-pandemic levels. This change is underscored by recent data from the Australian Bureau of Statistics (ABS), which reveals a significant decrease in the number of Australians leaving their jobs or starting new ones.
In the 12 months leading up to February 2024, the data shows that only 8 percent of employed individuals, or approximately 1.1 million people, changed their employer or business. This marks a decline from the 9.5 percent reported in the previous year, indicating a considerable reduction in job mobility across the nation. This shift suggests that Australians are now less inclined to change jobs compared to the height of the pandemic, when job mobility was notably higher.
The job mobility rate for the past year was marginally higher for women, at 8.2 percent, compared to 7.9 percent for men. This is a notable development as, historically, men have had higher job mobility rates for most of the past decade. This change could reflect broader shifts in the labor market, with more women feeling confident or compelled to change jobs in the current economic climate.
Across various industries, job mobility rates generally fell, with the arts and recreation services sector experiencing the most significant decline. This industry saw a drop of 6.4 percent, highlighting the challenges faced by sectors heavily impacted by the pandemic and subsequent economic fluctuations. The decline in job mobility within this sector could be attributed to reduced opportunities and a more cautious approach from employees wary of the uncertainties still lingering in the job market.
Interestingly, Generation Z continues to exhibit the highest job mobility rates among all age groups. Approximately 12.6 percent of individuals aged 15 to 24 changed jobs within the past year. Despite this high mobility, youth job mobility was 15.9 percent lower than in 2022, a period significantly affected by the pandemic. Moreover, current levels are well below the rates seen 20 years ago, which exceeded 20 percent. This suggests that while younger workers are still more likely to change jobs compared to other age groups, their mobility has not fully rebounded to pre-pandemic levels.
The report also highlights the struggles of unemployed Australians in finding work. In the year leading up to February 2024, the number of Australians who wanted to work but were not employed rose to 1.9 million, an increase from 1.8 million the previous year. This increase in unemployment underscores the ongoing challenges in the labor market, where many individuals face barriers to employment, including insufficient work experience, ill health, or disability.
The return to pre-pandemic job mobility levels reflects a broader stabilization in the labor market as the initial disruptions caused by the COVID-19 pandemic subside. However, the persistent challenges in certain sectors and the difficulties faced by unemployed Australians in finding work indicate that the job market is still in a state of flux. As Australia continues to navigate the post-pandemic economic landscape, understanding these dynamics will be crucial for policymakers and businesses aiming to foster a more robust and inclusive labor market.