Are employees prioritising cost of living over career growth?

Are employees prioritising cost of living over career growth?

As the cost of living continues to soar in Australia, many job seekers are faced with difficult choices between career growth and financial stability. Recent statistics from the Australian Bureau of Statistics highlight a troubling trend: currently, 961,000 Australians are juggling multiple jobs to make ends meet amidst rising living expenses and underemployment. The landscape has shifted dramatically since the post-pandemic recruitment boom of 2022-2023. Back then, there was an abundance of vacancies, heightened salaries, and a skills shortage, leading to a surge in job opportunities. However, as 2024 comes to a close, the market is in a state of recalibration—the growth has slowed, and people are reconsidering what matters most in their careers.

Today, job seekers are increasingly prioritising work-life balance, job security, and flexibility over career advancement. The ongoing economic challenges have brought a stark realisation that sometimes it is better to step back in the short term to ensure a sustainable future. As companies continue to re-evaluate their retention strategies and consider the true value of training and development, the interplay between cost of living pressures and career aspirations is becoming more complex than ever.

“People want to know there’s a path for growth, but they’re not necessarily in a rush to get there.”

In a recent episode of "people2people's Australian Market Update: Thrive in 2025," Temporary Team Leader Mary Savova was joined by Specialist Recruitment Consultant Leanne Lazarus to discuss the impact of rising living costs on career growth. The conversation was packed with valuable insights into the choices job seekers are making and how companies are responding.

Reflecting on the evolution of the market, Leanne explained that the recruitment boom of 2022-2023 created a lot of opportunities for job seekers. However, as 2024 progressed, people who had made moves to secure higher salaries started re-evaluating their choices. "People have realised that while they may have taken a role with better pay, it didn’t always align with expectations in terms of company culture or work-life balance," Leanne shared. As a result, some have returned to the job market, seeking more than just a paycheck—they are looking for long-term satisfaction and security.

Mary also highlighted a growing trend where many job seekers are willing to take a step back in their career. "We’re seeing people accept lower-level roles or slightly lower salaries in exchange for better work-life balance, training opportunities, and internal growth," she noted. Leanne elaborated on this, saying, "Salary still matters, but people are more interested in the full package. They want to know what’s offered beyond just money—flexibility, development, culture, and succession planning."

With more emphasis on non-monetary benefits, the recruitment landscape is changing. According to Leanne, career progression is important to many candidates, but it doesn’t need to be immediate. "People want to know there’s a path for growth, but they’re not necessarily in a rush to get there," she said. The focus has shifted from immediate upward movement to ensuring long-term satisfaction, where employees look for stability, ongoing learning, and a supportive company culture.

This has also influenced how companies approach hiring. Leanne noted that organisations are increasingly focusing on both attraction and retention strategies, particularly by investing in learning and development. "We’ve seen a lot more learning and development roles come to market as businesses look to enhance their internal capabilities while providing value to employees," she added. This trend reflects a dual focus: helping businesses grow while offering employees the skills they need to advance internally.

However, there are concerns about the potential long-term impacts of opting for short-term solutions. Mary touched upon how taking on lower-paying or temporary roles might affect an individual’s career trajectory. "It’s important for job seekers to be able to explain gaps or short-term roles in their CV," Leanne advised, "whether it’s due to a contract position, a headcount freeze, or simply a result of the challenging market during the pandemic. Employers do understand this context, and in many cases, they appreciate the adaptability that comes with varied experience."

Leanne also pointed out that different employers have varied preferences when it comes to CVs. "Some prefer to see a lot of movement because it indicates adaptability and a fresh perspective, while others value tenure and stability," she explained. This makes it essential for job seekers to understand the culture of potential employers and tailor their applications accordingly.

Tips for Balancing Career Growth and Cost of Living

While it may be tempting to sacrifice career development for short-term stability, it’s important to strike a balance between financial security and long-term career growth. Here are some strategies to help:

1. Prioritise Flexibility and Learning Opportunities: Instead of focusing solely on salary, consider roles that offer flexibility, ongoing learning, and career development opportunities. This can help you grow within an organisation while also managing cost-of-living pressures.
   
   
2. Think Long-Term, Not Just Immediate Gains: When assessing job opportunities, look beyond the immediate paycheck. Consider how the role will help you achieve your career goals in the long term—whether through building new skills, gaining experience, or establishing a path for future growth.
   
   
3. Communicate Clearly in Interviews: When discussing your career choices with potential employers, be transparent about the reasons behind any short-term roles or gaps in your employment history. Framing these experiences as opportunities for growth and adaptability can help build a positive impression.
   
   
4. Develop a Personal Budget and Career Plan: Developing a plan that balances financial needs with career ambitions is essential. This can help you identify opportunities where you can afford to make short-term sacrifices for long-term benefits.
   
   
5. Consider the Full Package: Evaluate job offers not just by salary but by the full benefits package. This includes work-life balance, health benefits, company culture, growth opportunities, and flexibility. Understanding the total value of what a role offers can help you make decisions that support both your career and personal needs.
   
   

As the Australian job market evolves in response to economic pressures, job seekers are rethinking what matters most. Whether it’s a focus on growth, balance, or simply financial security, it’s clear that thriving in 2025 will require a thoughtful approach to both work and life. By keeping an open mind and weighing the full range of benefits, job seekers can navigate these challenges and set themselves up for sustainable success in the future.

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