How Australia’s federal election is reshaping the job market

1. Wage growth is front and centre

One of the government’s headline promises is boosting the minimum wage, from $24.10 to $24.68 per hour. While this might seem like a modest jump, it’s designed to outpace the current inflation rate of 2.4%, putting more money in the pockets of around 3 million Australian workers. Sectors like retail, cleaning, and early childhood education stand to benefit the most.

But even if you’re in a white-collar role, this change matters. According to Bernadette Bentley, Head of Federal Government at Robert Walters Australia, the ripple effects will likely be felt across the entire job market.

“As lower-paid sectors see improvements, employers across all industries may face increased pressure to offer competitive salaries, flexible work options, and stronger job security to attract top talent,” Bentley explains.

In short, employees across the board may soon have more bargaining power - and higher expectations. 

2. Employment law reforms could shift the power dynamic

The government is also proposing significant changes to employment laws, including:

• Banning non-compete clauses for low- and middle-income earners
• Improving protections for gig economy workers
   

These reforms aim to rebalance power in the workplace and give workers more freedom and security in how they engage with employers. If you’re managing a team or running a business, now’s the time to review your contracts and employee value proposition.

3. Public sector hiring surge creates new opportunities

Get ready for a hiring boom in the Australian Public Service (APS). The government plans to create 3,400 new APS jobs this year alone, adding to over 40,000 roles created since 2022.

For professionals in compliance, policy, IT, and project management, these roles offer a compelling combination of career stability and meaningful work.

“We’re seeing more candidates gravitate toward public sector jobs - not just for job security, but to be part of impactful, large-scale initiatives,” says Bentley. “To stay competitive, private sector employers will need to focus on flexibility, purpose-driven work, and clear upskilling pathways.”

4. Australia’s job market is strong - but not without risks

The good news? Australia’s unemployment rate is at its lowest in over 50 years, and wages are on the rise. It’s a strong job market by any standard.

The challenge? The government’s high spending, including ambitious public sector expansion and infrastructure projects, could lead to a $70 billion budget deficit. That has economists and business leaders urging caution.

“The job outlook is positive, but economic uncertainty remains,” warns Bentley. “Businesses need to stay agile, focusing on cost management, employee training, and smart talent strategies to weather any shifts in the market.”

5. Housing affordability is now a workforce issue

Housing and hiring might not seem directly connected but they’re more linked than ever.

Labor has committed to building 1.2 million homes by 2029, starting with a $10 billion investment in housing for first-home buyers. Why does this matter for talent?

Because where people can afford to live directly impacts where they’re willing to work.

“Affordable housing close to employment hubs helps companies attract and retain the right talent,” Bentley explains. “We’re seeing people relocate due to cost-of-living pressures, especially in Sydney and Melbourne. This is a trend we’ve been seeing for a while and has been accelerated due to increased cost-of-living pressures.” 

In fact, a recent Robert Walters survey found that 56% of Australians are considering a move in 2025, largely due to housing costs. Strategic investment in housing could stem this trend—and open new talent pools for employers.

What’s next for employers and job seekers?

The 2025 federal election has set the tone for a new era in Australia’s workforce, with a clear push toward fair wages, more secure jobs, and bigger public investment in people and services.

Whether you’re looking for your next role or managing a team, the message is clear: expect change and prepare to adapt.

For job seekers, this means more opportunities and better negotiating power - particularly in sectors aligned with government priorities. 

For employers, it’s time to revisit your hiring strategy. Offering competitive salaries, flexible work arrangements, and meaningful career development will be essential to stay ahead in a rapidly shifting talent market. 

Recruiters can play a key role in connecting candidates with the right opportunities and helping organisations navigate hiring challenges with up-to-date market insights and access to top talent. 

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