Australia’s national rate of worker displacement has fallen over the past decade, declining from around 6% in 2015 to 4% in 2025.
At the same time, the nature of total job separations (voluntary and involuntary) has changed. Voluntary separations increased from 53% to 58% of all job separations between 2015 and 2025, while involuntary displacement fell from 39% to 30%.
The report, Recent trends for displaced workers in Australia, also finds that the industry, occupational and geographic profile of displacement has shifted. Compared with earlier in the decade, displaced workers are now more likely to come from service industries and professional and managerial occupations in metropolitan areas, compared to mining-related technical and trade occupations in regional areas.
Outcomes for displaced workers have also improved. Workers displaced more recently are more likely to return to employment and are experiencing smaller earnings losses than those displaced earlier in the decade.
However, returning to work is only part of the story. Earnings losses persist and our Post-Displacement Outcomes Index shows how some occupations have stronger outcomes whereas others are weaker.
The report also highlights the growing role of insolvency-related displacement, particularly among small businesses. Workers affected by business insolvency may have limited access to redundancy payments and other employment protections.
Understanding how displacement is changing can help government and industry modernise displacement monitoring and review whether existing supports are fit for purpose. The report also offers a baseline for future changes including emerging risks associated with AI, and offshoring. The new more detailed occupation and outcomes evidence will also help better target support towards workers who need it most.
