It’s a hot topic that’s taken over in the media lately. It’s a big concern for industry, government, with mums and dads, in the lunchroom, and for those leaving university. No, it’s not petrol prices or crime stats. The big issue is the changing nature of employment to part time casualisation.
The changing nature of the workforce is the result of several forces including demographic, technological and economic changes in Australia. Each results in in higher levels of unemployment and the productivity growth of a nation. However the emotional outcome is that shorter working hours have a direct impact on the wellbeing of Australian households, and the topic is complex.
Some might say, as a strategic decision, it makes sense for a lot of small to medium businesses to change their workforce to part time. Many Australian businesses have labour costs which have been soaring out of control for years.
The hard hit retail sector has probably led the charge on casualisation and many have little choice but to cut out the full time employee, with on costs that are typically in the range of 1.25 to 1.4 times base salary. So the cost range of a typical employee at $50,000 might be $62,000 to $70,000. There is payroll tax, personal/carers’ leave, training, and the list goes on.
Depending who you ask, the reduction in permanent full-time positions (and relative increase in part-time, casual and freelance working hours) is either a great thing for workers’ choices[i] or a sign of a slowing economy and increasing gap between rich and poor[ii]. It’s certainly true that casualisation has impacted some industries more than others. For example, if you look at the ABS stats, the underutilisation rate has been increasing for over a decade now. In other words, the number of people with fewer hours than they want/need is on the rise[iii].
What is the casualisation of the workforce?
Casualisation of the workforce is the long-term shift away from permanent, ongoing jobs towards casual, contract and on-demand work. A casual role usually trades job security and paid leave for flexibility and a higher hourly rate – the casual loading, set at 25 per cent under Australia’s National Employment Standards.
It’s closely related to the gig economy, but the two are not the same. Casualisation describes the broad move away from permanent employment. The gig economy is one part of that shift, where people string together short, often app-based jobs instead of holding a single steady role.
For workers, the practical difference comes down to certainty. A permanent employee knows roughly what lands in their account each fortnight. A casual or gig worker often does not – and that one fact shapes how they budget, save and plan.
Post 9-5 work trends
The term ‘casualisation’ means converting permanent full time and part time positions in to casual positions. Often the same (or similar) hours are worked, but being a casual means less stability and certainty for the worker. On the flip side, it gives businesses (especially vulnerable small businesses) extra flexibility with their labour costs.
Speaking of labour flexibility, the ‘gig economy’ has similar benefits and pitfalls. The term has emerged in the past few years as a handy way to describe a labour market that’s mostly about short-term contracts and freelance work, rather than permanent jobs. Several economists and HR commentators have predicted that in coming years, an increasing proportion of the workers will be contractors[iv].
No matter how you slice it, jobs are changing to part time and casual. At the other end of the scale, there is a growing divide of the out of work and the overworked. We can navel gaze about the jobs and plan for a job that doesn’t exist but reality is that this is an unknown factor.
The casualisation of the Australian workforce, and where things currently stand
So how far has the casualisation of the Australian workforce actually gone? The clearest picture comes from the Australian Bureau of Statistics. In August 2024, about 2.4 million people – roughly 20 per cent of all employees – considered their job to be casual. A slightly broader measure, employees with no paid holiday or sick leave, covered around 2.6 million people, or 22 per cent of employees.
Two things stand out. First, casual work is common but not the norm: four in five employees still hold a role with leave entitlements. Second, the trend is not the one-way climb it’s often assumed to be – ABS figures show the casual share of the workforce has eased in recent years rather than risen.
The headline number matters less than what it means for households. Casual and gig income can move from week to week, there’s no paid leave to lean on during illness, and lenders often treat variable income more cautiously. For many Australians, that turns everyday money decisions – covering a quiet fortnight, saving a buffer, planning a big purchase – into a moving target.
Source: Australian Bureau of Statistics, Working Arrangements, August 2024.
What do affected employees need?
They need a plan. When a position is made redundant, the affected employee/s may or may not be entitled to severance money. The news might be expected or not expected. However the first step should be making sure they know what to do. How should they use their time in the coming days and weeks? If entitled to redundancy then how can they make the most of that redundancy money? It’s critical to deliver content to address these kinds of challenges and questions. Online education is the most flexible and effective way of delivering this content.
Financially, a plan is the most important aspect. As the labour market continues to change, so too will the expectations of those looking for work. The chance of it happening to you, your partner or a friend is high. A plan of action allows us to maintain some degree of control over our lives even when it feels like everything is out of control.
What casualisation means for your financial wellbeing
When income is irregular, the usual advice to “set a fixed monthly budget” only gets you so far. The real skill is managing variability: knowing your baseline costs, topping up a buffer in the good weeks, and telling the difference between a lean fortnight and a genuine problem. None of that needs a finance degree. It needs financial education that speaks plainly and meets people where they are.
That’s the gap Money101 was built to close. Rather than telling people what to do with their money, our modules help them understand how money works – budgeting on a variable income, preparing for a break in work, and building the confidence to make their own decisions. It’s education, not advice, and it’s made to be accessible to everyone on the team.
For employers, casualisation is a staff wellbeing issue too. People carrying financial stress bring it to work with them. A workplace financial wellbeing program gives casual and permanent staff alike the tools to steady their finances – and some of the peace of mind that comes with it.
Introducing the latest from Money101…
Money101 has developed a unit, ‘One of us just lost our job’ . An well-timed and well-delivered education that can support anyone going through difficult career times. This unit can make a huge difference to the way the worker manages their finances. And help the next steps with home repayments or their financial planning. Online education has particular potential in this circumstance, because it is:
- Delivered remotely – no need to come in to the office/site
- Self-paced, so the worker can start, finish and pause as necessary
- Private and confidential (yet trackable for reporting purposes)
‘One of us just lost our job’ is filled with tips and guidance on budgeting, getting organised, and getting in to the right frame of mind to keep moving forward. Check out the description by hovering over the image to get a better feel for whether it’s right for your organisation. Remember, we’ve got a range of customisation options. Get in touch with the Money101 team now.
