Hairdresser Lisa Seeger is feeling the effects of a tough job market.
“I’m a single parent on a single income, and I pay my own mortgage,” Seger said.
”If I don’t get it [better-paying] Since it’s work, I have to start preparing the house for sale.”
Reduced job mobility is making it difficult for many Australians to secure higher paying jobs and advance their careers.
There are also concerns that the growing use of artificial intelligence (AI) could lead to further changes to Australia’s workforce.
Seeger, who has run her own salon for 16 years, wants a job that is less physically demanding and pays better.
She is considering roles in sales, customer service and local government.
Lisa Seeger worries that her employer’s use of AI is limiting her career opportunities. (ABC News: Peter Draft)
But in the six months she tried to find a job, she faced a series of rejections.
“I thought I had a lot to offer, and running my own business gave me a lot of transferable skills,” she said.
“Everyone keeps telling me, ‘If you work hard, you’ll get a job,’ but it was really discouraging and disappointing.”
Seeger said she believes AI is playing a role in her job search struggles, as employers are using it to weed out applicants without the right experience.
”We need to remember that how someone represents themselves on paper may not be who they really are.”
Despite struggling in an uncertain job market, Seeger is determined to show her daughter that a career change is possible.
“I will continue to get back on my feet and look for a better job with a higher salary. [so] I hope I can provide for her and leave a roof over our heads for the future. ”
Trent Wiltshire of the Grattan Institute said Australia should start preparing for disruption now, saying: “The dawn of AI is certainly upon us and it will be present in every workplace.”
There is a lot of uncertainty about how artificial intelligence will impact the workforce. (ABC News: Mark Leonardi)
How has the job market changed since the pandemic?
Although the unemployment rate remains relatively low, it has been trending upward over the past three years, at 4.3% as of October. In October 2022, it was 3.4%.
Over the past year, the number of job advertisements has decreased.
The number of job openings fell by 5,000 in the year to August 2025, a 1.5% decline, according to the Australian Bureau of Statistics.
Artificial intelligence is used by employers and people looking for work. (Unsplash: Israel Andrade)
After the pandemic, there was a huge demand for labor.
Since then, job mobility has declined for the second year in a row, with job mobility in 2022 being 9.5 percent, compared to 7.7 percent of people changing employers or businesses in the year to February 2025.
“We are completely out of the employment boom of a few years ago, and the labor market and economy are slowing down,” said Blair Chapman, senior economist at job site SEEK.
Job mobility is important for individual wage growth and the economy as a whole.
“If you want a higher wage, often the best way to get it is to change jobs.”
Chapman said.
Why is it becoming difficult to change jobs?
In addition to the economic slowdown, an aging population may also be part of the reason why Australians are becoming older and less likely to change jobs, reducing job mobility.
Mr Wiltshire said competition and business dynamism had also declined.
“That means more traditional companies will last longer and fewer new startups,” he said.
Trent Wiltshire says governments need to prepare for the disruption caused by AI. (ABC News: Peter Draft)
New Zealand’s tight job market may also be playing a role.
New Zealand’s unemployment rate in the September quarter of this year was 5.3%, the highest level in nine years.
“There are a lot of New Zealanders looking for work in Australia,” Mr Chapman said.
Uncertainty surrounding U.S. tariffs and the promise of AI may also be reasons why companies are reluctant to increase headcount.
More and more companies are using AI to check job applications
Lisa Seeger worries that AI is limiting her chances of changing careers by weeding out applications without the right experience.
Chapman said the use of AI is increasing among both employers and job seekers.
“About 20% of new hires are using AI to create job ads and streamline the process,” he said.
“Just over a third of candidates use AI to write cover letters, resumes, and more.”
Blair Chapman says changing jobs is often the best way for workers to get a pay rise. (Supplied)
He said that while Seek provided employers with a complete list of candidates who applied for a job, employers could use AI to examine applications to see if the person has the right experience.
“If you’re a forklift driver, do you have a forklift license? AI is making checking boxes like that much faster.”
What can you do?
Trent Wiltshire of the Grattan Institute says the rapid increase in the use of AI is threatening a variety of professions, including radiologists, middle managers, and financial analysts.
Wiltshire said it is not yet clear whether companies will use AI to replace employees to reduce costs or to improve the productivity of existing employees.
“There is a possibility of a doomsday scenario where there will be mass unemployment,” he said.
Artificial intelligence threatens a wide variety of jobs, says Trent Wiltshire. (AAP: Dan Himbrecht)
Mr Wiltshire said that although a doomsday scenario was unlikely, contingency plans were needed and the government should start preparing now.
”job seeker [unemployment benefit] The rates are so low that they are not enough for many people.”
Mr Wiltshire said the government should consider offering unemployment insurance, which would be a large but time-limited payment based on previous earnings.
Loading…
