This trend is rapidly gaining momentum as the weakening Australian economy compels employers to rely heavily on casuals and part timers.
According to Australian Bureau of Statistics data for November, a net total of 56,500 full time positions were eliminated within a month, on the other hand, there was an addition of 35,200 part time and casual positions.
The employment level in total fell by 21,300, which marked the steepest fall since February.
The unemployment rate stayed steady at around 4.3% however, this was because more people quit the labor market.
These statistics suggest that the labor market is quietly under pressure.
The net addition of full time employees over the last two years has almost been negligible, where services employment – particularly in the retail, hospitality, aged care and health care sectors made up for the shortfall.
On the other hand, heavy industry saw an opposite trend, with job losses in thousands within the states of Western Australia and Queensland owing to the reduction in coal, iron ore and alumina production.
The squeeze on households is largely explained by cost of living pressures.
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Median weekly earnings rose 1.9% in the year to August 2025, a $26 increase to $1,425. That was easily outstripped by inflation, meaning most workers were worse off in real terms.
Inflation could continue to climb through the first half of 2026, the Reserve Bank has warned, a prospect that already prompted the central bank to lift the cash rate again.
Casual workers continue to be employed in Australia, but their presence is less significant than many people think.
According to the dataset, casual employees make up almost 19% of the entire workforce, which equates to nearly one-fifth of the total workforce.
“The share of casuals has dropped by around four percentage points over the last nine years,” noted labor statistician Sean Crick.
Almost 75)% of casual workers prefer being casual due to the flexibility and increased payment rates, whereas others want annual leave and a more predictable schedule.
The decades long reduction in casualization makes the current rise in casual and part time employment noteworthy.
As expected, the Deloitte Access Economics predicts that job creation will reduce from 1.8% in 2025 to 1.1% in 2026 due to the declining influx of migrants and conservative hiring practices in the private sector.
Given the rising interest rates and tight financial conditions in households, firms are likely unwilling to commit to fulltime employment and resort to cheaper and more flexible labor options.
The next gauge on the trend will arrive with the April labour force release later this week, which economists will be watching closely for signs the slide in fulltime hiring has steadied or deepened.
