A Nation on Hold: Australians Are Becoming Less Mobile, Less Dynamic, and More Risk-Averse
A series of recent economic indicators paints a stark picture of a nation that is increasingly stuck in place. Job-switching rates have plummeted, fewer people are moving between states, and the spirit of entrepreneurship is waning. Analysts point to a toxic mix of high housing costs, heavy regulation, and deep-seated economic fear as the primary drivers of this trend.
"All of these factors point towards Australians being stuck or being held in the jobs that they currently have." – Rachel Lee, e61 Institute
The Decline of Job Mobility
The most significant shift is in the labor market. In the year to February 2025, only 1.1 million people changed jobs, representing just 7.7% of employed persons—or roughly one in 13 workers. This is a dramatic drop from 11% in 2005 and a staggering 20% in 1989.
Economists see this as a sign of deep stagnation. Rachel Lee, a research economist at the e61 Institute, notes that the data suggests workers are "held" in their current roles, unable or unwilling to move for better opportunities.
The Retreat from Self-Employment
The desire to go it alone has also collapsed. The share of self-employed Australians has fallen from a peak of 20% of employment in 2002 to just 14% today. Similarly, the number of sole traders has dropped from 12% in 2002 to under 9% now.
Dimitri Burshtein, an economist from Eminence Advisory, argues that high income tax rates and a heavy regulatory burden are crushing ambition. "What our current settings do is it just makes it really hard for our young people to accumulate wealth and to innovate and to be dynamic," he said.
Interstate Moves Hit a Low
Geographic mobility is also grinding to a halt. Property market expert Cameron Kusher notes that the proportion of the population moving between states has declined significantly. High housing costs, rising interest rates, stamp duty, and agent fees are all contributing to a culture of "safety and security" over risk-taking.
Why Is Everyone Staying Put?
Several key factors are locking Australians into place:
1. The Housing Trap
The cost of housing is the single biggest anchor. Rachel Lee points to the average mortgage risk—$700,000 over 30 years—which makes changing jobs or locations feel financially impossible. Kate McCready, a business strategist, agrees: "I do think there's a lot of fear in the workplace at the moment."
2. Wage Jobs Are Now "Safer"
The relative attractiveness of traditional employment has increased. Lee notes that wage jobs now come with expanded superannuation, paid parental leave, and other benefits. Furthermore, skills like decision-making, problem-solving, and creativity are increasingly rewarded within corporations, making self-employment less appealing.
3. The Fog of Economic Uncertainty
The current economic climate is creating a culture of fear. McCready, who works with people transitioning to self-employment, says that advances in AI, the uncertain global environment, and a tightening jobs market are making people terrified to leave the safety of their current roles.
4. Regulation Protects the Status Quo
According to Burshtein, regulation places a "disproportionate burden" on new businesses while protecting established incumbents. This stifles innovation and makes it harder for dynamic entrepreneurs to compete.
The Bigger Picture
Australia has experienced only two recessions in the past 40 years (1990/91 and 2020). Yet, despite this long period of economic stability, the population is becoming more conservative.
The federal budget has recently taken steps to address the housing crisis, including potential changes to negative gearing and the capital gains discount. However, as the data suggests, the trend toward inertia is deeply entrenched.
"People are worried about keeping jobs and what happens if they can't." – Kate McCready