Natasha is a leading HR expert, entrepreneur, author and sought-after media commentator for outlets such as Sunrise (Channel 7), ABC Radio and The Australian Financial Review. Natasha co-founded Employee Matters in 2011 to help Australian businesses achieve success through their people.
Australia’s job mobility rate has fallen to its lowest level on record, with fewer Australians choosing to change jobs amid ongoing economic uncertainty.
In a shift from the job-hopping trend seen in recent years, more employees are choosing to stay put – a trend increasingly described as “job hugging”. But why are Australians reluctant to change jobs, and what does this mean for employers trying to attract and retain talent?
Employee Matters Managing Director Natasha Hawker recently joined Sunrise to discuss why Australians are becoming more cautious about changing jobs, what this means for employees and employers, and how businesses can stay competitive in a changing employment market.
What’s Happening in Australia’s Job Market?
The latest Australian Bureau of Statistics data shows that 7.2% of employed Australians changed jobs in the year to February 2026 – the lowest job mobility rate on record.
With cost-of-living pressures, economic uncertainty and concerns about job security, many employees are choosing to stay in their current roles rather than take the risk of moving.
For employers, this may make retention easier in the short term. But staying doesn't necessarily mean staying engaged.
Employees who feel valued, supported and have opportunities to grow are far more likely to stay for the right reasons.
Job Hopping vs Job Hugging
Job hopping describes employees who frequently move between employers to pursue better pay, career opportunities, flexibility or workplace conditions.
Job hugging is almost the opposite. It describes employees staying in their current roles because changing jobs feels too risky or uncertain.
Australia’s record-low job mobility suggests the balance may currently be shifting towards job hugging. But for employers, retaining employees simply because they are reluctant to move isn't the same as genuine engagement or loyalty.
How Can Employers Retain Their People?
Your Employee Value Proposition (EVP) plays an important role in attracting and retaining talent.
A strong EVP goes beyond salary. It considers the overall employee experience – including workplace culture, leadership, flexibility, career development, recognition and the way people are managed.
Now is a good time for businesses to ask:
Are we giving our people reasons to stay?
Is our EVP competitive?
Are managers effectively managing and supporting their teams?
Are employees seeing opportunities to develop and progress?
Is our workplace culture one people want to be part of?
The best retention strategy isn't simply preventing people from leaving. It's creating a workplace they don't want to leave.
What Does This Mean for Your Business?
Australia's record-low job mobility highlights an important point for employers: a cautious job market shouldn't be your retention strategy. Businesses that invest in their people, culture and employee experience will be better positioned to attract and retain talent, even when the job market shifts again.
Employee Matters helps Australian businesses develop effective people strategies, manage employees and create workplaces that attract, engage and retain great people.
Transcript
Host 1: Let this statistic sink in: there are now fewer Australians changing jobs since the days of black and white television, which was a while ago. The nation's job mobility rate has fallen to the lowest on record according to the Australian Bureau of Statistics.
Host 2: Now, after Covid, the number of people finding new careers peaked, but in recent years, many workers are too scared to take the leap after numerous changes to Australia's workforce. And for more, we're joined now by Natasha Hawker, who is the Managing Director of Employee Matters. Morning to you, Natasha. Okay, so why are more people hesitant than ever before to change jobs?
Natasha Hawker: Yes, I think we're finding ourselves in a... If you think about it, we've got the Middle East crisis, we've got inflation, we've got interest rates, business confidence is decreasing. So people tend to go in defensive mode, and they want to batten down the hatches. So a job offer has to be incredibly compelling for someone to take that risk and move jobs.
Host 1: There's also a risk when you go to the boss and ask for a pay rise, right? So people are now becoming more fearful of doing that as well, not just looking at switching jobs, but saying, "Okay, if I'm going to stay, I need more money."
Natasha Hawker: Yes, I think people have tended to be quite resistant to asking for a job offer... a job increase in your wages. But what I would suggest to you is you need to have a really strong business case for why you deserve that. Don't just go in there and say, "It's a cost of living crisis, I need more money." You need to be able to go in there and say, "I've achieved X, Y, and Z, and this is why I think I deserve this amount of money, and this is what I'm seeing on the market if I was to go out and change jobs."
Host 2: What's your advice when you hear back, "Look, we'd love to, but we just don't have the money"?
Natasha Hawker: I think you've got to just take that on the chin and see how that goes, and then say, "Alright, well let's have a look at this again in six months, and if I'm achieving these goals by that time, then I should be able to get an increase." Right. Or your alternative is you look elsewhere.
Host 1: Yeah. Some people just have, you know, almost a bit of a time limit on their job. Some people like to stay in their job for ages, and others have a bit of a time limit—four or five years, they feel the itch to move on. So if you are thinking about taking a leap, what do you need to really consider?
Natasha Hawker: Yeah, there's a lot that you should consider. I think people often go in ill-prepared for that. It's almost like it's a full-time job finding a job. So a couple of things is you need to write a great CV, and when I say write a great CV, don't get AI to do it. By all means, get a template, and get them to critique it, but we want to see you. Recruiters can very easily tell what's been done by AI, and it lacks authenticity.
Make sure you practice some interview questions. Do an interview with a friend, and have them ask you questions. Do your preparation, make sure you have questions to ask. A great one is, "So what do you like about working here, Mon?" so that you make sure that you are prepared and you're putting your best foot forward and you're impressive, and people remember you.
Host 2: What trends are you seeing in the job market at the moment, and your suggestion to anybody about perhaps an area that they might not have thought of, perhaps growth areas?
Natasha Hawker: I think in terms of industries, I would say there are still some growth areas in areas such as environmental, professional services, education, and still in those areas where we're looking to do training. But the one tip I would give you is make sure you've done your LinkedIn profile. Spruce it up. I can guarantee you any recruiters and hiring managers are going to check it out, and you want to make sure yours presents exceptionally well.
Host 1: A final one for me too: AI in all of this. Is AI helping or hindering what we're talking about?
Natasha Hawker: So AI is a really interesting one. I think we're in a bit of a bubble, and if that bubble bursts, there will be contraction in the market and we will lose jobs. So why would somebody risk losing potentially, if they've been there six or seven years, a redundancy package to move jobs? So your offer needs to be incredibly compelling. But what I am seeing is AI is actually creating jobs, it's not just losing some. We're using it for efficiency in our business and it means we're actually getting more people on board, not losing them.
Host 2: Natasha, great to chat. Thank you.
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