Talent Management
Australian workers struggle to switch jobs as AI and a cooling economy tighten opportunities
New data shows job mobility slipping to its lowest point in years, leaving many workers unable to secure better pay or career changes amid rising AI-driven screening and a slowing labour market.
Australia’s labour market has settled into a slower rhythm, and workers trying to shift careers are feeling the strain. Job mobility has now dropped for the second year in a row, and many who should be moving into better-paid roles are instead stuck waiting for openings that no longer come as easily.
After 16 years of running her own salon, hairdresser Lisa Seeger is finding that changing careers isn’t as straightforward as she hoped. She’s been applying for roles for half a year now, looking for work that’s easier on her body and pays more reliably, but the response has been discouraging. Even with solid customer experience and the practical know-how that comes from managing a business on her own, she keeps hitting roadblocks. Seeger believes AI screening tools may be filtering out candidates whose experience doesn’t perfectly match the job description — a concern echoed across several industries.
The broader numbers point to a market losing some of its post-pandemic heat. The unemployment rate has inched up to 4.3%, and job vacancies have dipped by 5,000 in the past year. SEEK data shows only 7.7% of employed Australians changed jobs in the year to February 2025, compared with nearly 10% three years earlier. Economists attribute this to a slowing economy, an ageing workforce, and fewer new businesses entering the market — all of which reduce opportunities for workers to move.
AI is adding another layer of change. Around one-fifth of employers now use AI to help write job ads or screen applicants, accelerating the shift toward automated hiring. While the technology speeds up tasks like verifying licences or checking technical experience, experts warn it may also be narrowing the field too aggressively.
With AI advancing quickly, analysts are urging governments to prepare early for workplace disruption. The call includes reviewing unemployment support and exploring income-linked insurance should large segments of the workforce find themselves displaced in the years ahead.
After 16 years of running her own salon, hairdresser Lisa Seeger is finding that changing careers isn’t as straightforward as she hoped. She’s been applying for roles for half a year now, looking for work that’s easier on her body and pays more reliably, but the response has been discouraging. Even with solid customer experience and the practical know-how that comes from managing a business on her own, she keeps hitting roadblocks. Seeger believes AI screening tools may be filtering out candidates whose experience doesn’t perfectly match the job description — a concern echoed across several industries.
The broader numbers point to a market losing some of its post-pandemic heat. The unemployment rate has inched up to 4.3%, and job vacancies have dipped by 5,000 in the past year. SEEK data shows only 7.7% of employed Australians changed jobs in the year to February 2025, compared with nearly 10% three years earlier. Economists attribute this to a slowing economy, an ageing workforce, and fewer new businesses entering the market — all of which reduce opportunities for workers to move.
AI is adding another layer of change. Around one-fifth of employers now use AI to help write job ads or screen applicants, accelerating the shift toward automated hiring. While the technology speeds up tasks like verifying licences or checking technical experience, experts warn it may also be narrowing the field too aggressively.
With AI advancing quickly, analysts are urging governments to prepare early for workplace disruption. The call includes reviewing unemployment support and exploring income-linked insurance should large segments of the workforce find themselves displaced in the years ahead.
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