Nobody Wants To Work Anymore: The Truth Behind Your Staffing Shortage

Nobody wants to work these days. This is a comment many businesses are making at the moment. Since COVID, it seems to have become a common explanation when hiring becomes difficult. In reality, the statement often comes from frustration with the job market and the challenges employers are facing when trying to fill roles, rather than the newest generation not wanting to work.

You may have clicked on this article expecting it to agree with that sentiment. If you have found yourself saying or thinking this recently, you are certainly not alone. However, it is worth exploring whether a lack of willingness to work is actually the cause of current staffing shortages, or if something else is happening within the labour market.

In January 2026, the unemployment rate decreased to 4.1%, and during that same month, Australian work hours increased to 2,007 million (Australian Bureau of Statistics).

When we step back and look at unemployment historically, a rate around 4% is considered very low. It has also remained relatively stable since the initial spike in unemployment during COVID.    

The graph below only shows data until 2022; unemployment has continued to sit around the 4% mark across the following four years. This stability suggests that the labour market is tight, meaning there are fewer unemployed people available to fill roles, rather than a widespread lack of willingness to participate in the workforce.

But what about young people? Gen Z just do not want to work.

Again, the statistics do not support this claim. In fact, youth unemployment tells a different story. The youth unemployment rate for people aged 15 to 24 increased from 11.6% in March 2020 to 16.4% in July 2020 (Australian Bureau of Statistics). As many young people work in retail and hospitality, this rise is understandable given the widespread closures and restrictions during the pandemic.

However, the rate then fell significantly to 8.3% in March 2022, which is the lowest unemployment rate recorded for young people since it reached 7.6% in August 2008 (Parliament of Australia). Today, the youth unemployment rate sits at 9.6% (Australian Bureau of Statistics). This indicates that young people are participating in the workforce.

Many young Australians are not only working, but some are working more than one job. The Australian Bureau of Statistics reports that 973,000 Australians held multiple jobs in September 2025, representing 6.5% of the workforce, with people aged 20 to 24 among the most likely to hold more than one job (Australian Bureau of Statistics).

Data from Employment Hero also shows strong employment growth among younger workers. Australian youth currently have the fastest employment growth across all age cohorts. Workers aged 18 to 24 saw employment increase by 15.5% year on year. Even teenagers are experiencing strong growth, with employment for 14- to 17-year-olds increasing by 31.2% and hours worked rising by 17.5%.

Much of this hiring momentum is being driven by casual and part-time work. Casual employment has increased by 9.1% year on year, while full-time employment has largely plateaued, increasing by just 2.8% year on year and falling 0.1% month on month (Employment Hero).

At this stage of life, many people in Generation Z are working in retail, hospitality, health support, or community-based roles. These positions are often casual or part-time, so they can balance work alongside other commitments such as study.

So, if people are employed, where are they, because I can’t find any?

Ageing Population: Australia’s population is ageing, increasing demand for aged care and medical services. This drives a high need for nurses, care workers, allied health staff, and support roles. At the same time, experienced workers are retiring, adding pressure to an already tight labour market.

Staffing shortages in sectors like aged care, healthcare, and community support are therefore less about people not wanting to work and more about structural workforce challenges in a competitive market.

Lower Birth Rate: Like many countries, Australia is experiencing a declining birth rate. In 2025–26, the total fertility rate is expected to fall to a record low of 1.42 children per woman, well below the replacement level of 2.1. Fertility intentions have also been declining since 2001, though they remain higher than the total fertility rate (2025 Popular Statement, Australian Government Centre for Population).

Australian women are also having children later in life. The average age of women giving birth has increased from 28.9 years in 1998 to 31.3 years in 2023, while the average age for first-time mothers has risen from 28.3 years in 2010 to 29.9 years in 2023 (Australian Mothers and Babies 2026, Australian Institute of Health and Wellbeing).

This means society is replacing itself more slowly. With children being born later, it takes longer for the next generation to enter the workforce, contributing to longer-term labour shortages.

Migration Slowing: Although Australia saw record migration growth immediately after COVID, recent data shows that net overseas migration has been falling for the second year in a row. In the 2024–25 financial year, net overseas migration was 306,000, down from higher levels in previous years. The decline was driven by both fewer migrant arrivals and more departures (Overseas Migration 2024-2025, Australian Bureau of Statistics).

This slowing of migration affects the influx of working-age people who have been a major contributor to workforce growth in recent years. With fewer new arrivals coming in, the labour pool is tightening even further.

Industry Diversification: The Australian economy has significantly diversified, with growth in sectors such as health, technology, aged care, construction, and professional services. While this creates more job opportunities, it also increases demand for specific skills and qualifications. Some sectors are growing faster than the local workforce can supply, putting pressure on recruitment even when overall employment remains strong. The workforce is being spread thin across industries, and the pool of available talent is shrinking.

Qualified Trades Shortage: Australia is currently experiencing significant shortages across the trades and construction sectors. This ongoing challenge is driven by a decline in young people entering these career pathways, alongside strained training capacity. Licensing requirements and limited training availability remain key constraints. At the same time, public perception can, in part, be blamed for the longstanding preference for university degrees over trade careers, collectively reducing the number of newly qualified workers entering the labour market (Auspire Immigration 2025).

Staff Shortages Are Not About Laziness

Ultimately, staffing shortages are not about laziness or a lack of willingness to work. In today’s economic environment, people need to work, life is expensive! The issue is complex, with multiple factors at play. Australians are living longer, requiring more care. Families are having fewer children and later in life, creating a wider gap between generations. Migration has slowed, and the diversification of industries and career pathways spreads a smaller workforce across more roles. The pool of qualified staff is smaller, not because people are unwilling to work but because opportunities are more varied.

For businesses, workplace reputation, culture, and values are critical. Investing in becoming the employer of choice and focusing on staff retention is essential in a competitive labour market. Businesses also need to consider how they can upskill and train their existing staff to fill the skills shortages they are facing, creating a workforce that is capable, adaptable, and prepared for future growth.

If you are struggling to find the right people, reach out to our team today to explore how our recruitment solutions can help your business attract and retain skilled staff.